    [Appendix]
    [Detailed Budget Estimates by Agency]
    [Department of Housing and Urban Development]
    [From the U.S. Government Printing Office, www.gpo.gov]

                         THE BUDGET FOR FISCAL YEAR 2002

                   DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

        This chapter presents the budget estimates and program
    justifications for the Department of Housing and Urban Development
    (HUD). HUD's core mission is to promote adequate and affordable housing,
    economic opportunity and a suitable living environment free from
    discrimination. The 2002 Budget for HUD reflects initial implementation
    of a multi-year comprehensive reform effort which will enhance the
    effectiveness of programs, reduce high unobligated and obligated
    balances, and return HUD to its core mission. Congress has provided
    significant increases in several HUD programs over the past two years.

        The 2002 budget provides for three grant programs which will serve
    HUD's fundamental affordable housing and economic development missions.
    Community Development Block Grants (CDBG) will be increased to initiate
    a Community Technology Centers program building on HUD's existing
    neighborhood network program. In addition, a new initiative will be
    funded to improve access by disabled persons to religiously affiliated
    and community based facilities that are exempt from the requirements of
    Americans with Disabilities Act. The Self-Help Opportunities Program
    (SHOP) is increased by more than 10 percent in an effort to accelerate
    home ownership by low-income families.

        The HOME Investment Partnerships Program will include $200 million
    in targeted grants to increase first-time home ownership by lower-income
    families. New home buyers will receive down payment assistance.

        The 2002 budget includes 34,000 incremental vouchers that will help
    address the severe housing needs of low-income households. These
    vouchers are necessary to address the substantial number of families
    nationwide which have worst case needs for housing assistance:
    extremely-low income families currently paying more than half their
    income for rent or living in severely inadequate conditions. In
    addition, this Administration reaffirms the long-held commitment to
    renew all expiring Section 8 contracts, to protect residents from
    displacement by substantially increasing funding for Section 8 renewals,
    to provide Section 8 tenant-based assistance for displaced families, and
    for the replacement of affordable housing due to opt-outs from the
    project-based Section 8 program.

        The Administration also continues its support for the Department's
    successful Housing for Persons With HIV/AIDS program (HOPWA) by
    providing increased funding to prevent thousands of persons with HIV/
    AIDS from becoming homeless. This increase is necessary to continue to
    provide stable housing and services in existing local programs and fund
    new jurisdictions as they become eligible for formula funding due to the
    continued increase in the number of AIDS cases.

        The Housing for the Elderly program (under Section 202 of the
    Housing Act of 1959) will be increased in 2002 to fully provide for the
    renewal of contracts to assist rental of low-income elderly units. This
    is the first year that contracts for assistance will be renewed. The
    Housing for Persons with Disabilities Program (under Section 811 of the
    National Affordable Housing Act of 1990) will also receive additional
    funding to renew contracts for rental assistance in this program.

        The budget will increase the Federal Housing Administration's (FHA)
    maximum mortgage loan limits for multi-family projects. In addition, the
    budget authorizes FHA to develop new adjustable rate mortgage products.
    These provisions will provide much-needed credit assistance to first-
    time homebuyers, minorities, and other underserved populations.

        Increased funding for the Fair Housing Assistance and Fair Housing
    Initiatives programs (FHAP and FHIP) will strengthen the ability of
    public and private fair housing groups, and partnerships between them,
    to enforce the laws protecting all Americans against illegal housing
    discrimination. Funds dedicated in past budgets to completing a national
    survey of housing discrimination will be redirected in 2002 to both FHIP
    and FHAP, increasing total anti-discrimination activities by almost 20
    percent.

        In order to ensure the effective implementation of its programs, the
    Department's Office of Policy Development and Research (PD&R) will be
    provided with funds necessary to ensure timely provision of data,
    research and analysis of national housing and economic conditions, and
    to measure the performance of programs, consistent with the Government
    Performance and Results Act of 1994.

        The Department will initiate a number of reforms in 2002 to refocus
    HUD on its core mission and key programs. The first in a series of
    planned reforms to improve program performance is to ensure that
    programs receive funding when it is needed. Several programs have built
    up large amounts of unobligated and obligated balances, including the
    Public Housing Capital Fund and Section 8. Hence, these programs will
    not receive last year's levels until these balances are brought down to
    reasonable levels.

        In addition, duplicative and low-impact programs will be terminated.
    The Department is initiating full-scale reviews of other programs as
    well. Public Housing Drug Elimination Grants, which duplicates Public
    Housing Operating and Capital Funds, and a rural economic development
    program, which duplicates numerous USDA programs dedicated to rural
    development, will be terminated. Management reforms are a top priority
    for the new HUD. Inadequate systems have weakened HUD's ability to
    monitor lenders that use HUD's guarantees and resulted in several
    material weaknesses identified in the FHA financial audit. A fraudulent
    scheme known as property flipping also has been discovered. FHA will
    strengthen the integrity of internal systems and controls to eliminate
    the need for foreclosure moratoria or other emergency responses. Actions
    also include improving loan origination processes and providing better
    monitoring of lenders and appraisers. HUD will also focus on the long-
    standing problems of weak oversight of local housing providers and
    overpayments in HUD's rental assistance programs. Weak oversight of
    local agents has reduced the quality of housing services, increased
    costs, and reduced the number of households that can be aided. HUD will
    improve its management rating instruments to oversee these agents,
    making them more outcome-oriented rather than process-oriented and
    making other revisions as recommended by the National Academy of Public
    Administration. HUD will also undertake reforms to correct overpayments
    in HUD's rental assistance program because tenants' incomes are under
    reported and rents are improperly calculated or not fully collected. HUD
    will undertake reforms to reduce these overpayments including steps to
    ensure that local agencies and landlords can correctly calculate the
    rent owed based on program rules, full implementation of HUD's existing
    authority to match tenant-reported incomes with IRS records, and more
    accurate and full reporting by local housing agencies of tenant
    characteristics for all assisted tenants.

    [[Page 482]]

                            PUBLIC AND INDIAN HOUSING

                                  Federal Funds

    General and special funds:

                            Housing Certificate Fund

                         (including transfers of funds)

        For activities and assistance to prevent the involuntary
    displacement of low-income families, the elderly and the disabled
    because of the loss of affordable housing stock, expiration of subsidy
    contracts (other than contracts for which amounts are provided under
    another heading in this Act) or expiration of use restrictions, or other
    changes in housing assistance arrangements, and for other purposes,
    [$13,940,907,000] $15,717,392,000 and amounts that are recaptured in
    this account to remain available until expended: Provided, That of the
    total amount provided under this heading, [$13,430,000,000, of which
    $9,230,000,000 shall be available on October 1, 2000 and $4,200,000,000
    shall be available on October 1, 2001,] $15,506,746,000 shall be for
    assistance under the United States Housing Act of 1937 (``the Act''
    herein) (42 U.S.C. 1437): Provided further, That the budget authority
    (but not the outlays) for $4,200,000,000 provided under this heading in
    fiscal year 2001, to be available as an advance appropriation in fiscal
    year 2002, shall be considered direct spending in fiscal year 2002 for
    purposes of the Balanced Budget and Emergency Deficit Control Act of
    1990, as amended, and section 2(a) of Public Law 106-554: Provided
    further, That the foregoing amounts shall be for use in connection with
    expiring or terminating section 8 subsidy contracts, for amendments to
    section 8 subsidy contracts, for enhanced vouchers (including amendments
    and renewals) under any provision of law authorizing such assistance
    under section 8(t) of the United States Housing Act of 1937 (47 U.S.C.
    1437f(t)), contract administrators, and contracts entered into pursuant
    to section 441 of the [Stewart B.] McKinney-Vento Homeless Assistance
    Act: Provided further, That amounts available under the first proviso
    under this heading shall be available for section 8 rental assistance
    under the Act: (1) for the relocation and replacement of housing units
    that are demolished or disposed of pursuant to [section 24 of the United
    States Housing Act of 1937 or to other authority for the revitalization
    of severely distressed public housing, as set forth in the
    Appropriations Acts for the Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies for fiscal years 1993,
    1994, 1995, and 1997, and in] the Omnibus Consolidated Rescissions and
    Appropriations Act of 1996; (2) for the conversion of section 23
    projects to assistance under section 8; (3) for funds to carry out the
    family unification program; (4) for the relocation of witnesses in
    connection with efforts to combat crime in public and assisted housing
    pursuant to a request from a law enforcement or prosecution agency; (5)
    for tenant protection assistance, including replacement and relocation
    assistance; and (6) for the 1-year renewal of section 8 contracts for
    units in a project that is subject to an approved plan of action under
    the Emergency Low Income Housing Preservation Act of 1987 or the Low-
    Income Housing Preservation and Resident Homeownership Act of 1990:
    Provided further, That of the total amount provided under this heading,
    [$11,000,000 shall be transferred to the Working Capital Fund for the
    development and maintenance of] up to $13,400,000 shall be for
    information technology [systems]: [Provided further, That of the total
    amount provided under this heading, $40,000,000 shall be made available
    to nonelderly disabled families affected by the designation of a public
    housing development under section 7 of the Act, the establishment of
    preferences in accordance with section 651 of the Housing and Community
    Development Act of 1992 (42 U.S.C. 1361l), or the restriction of
    occupancy to elderly families in accordance with section 658 of such
    Act, and to the extent the Secretary determines that such amount is not
    needed to fund applications for such affected families, to other
    nonelderly disabled families:] Provided further, That of the total
    amount provided under this heading, [$452,907,000] $197,246,000 shall be
    made available for incremental vouchers under section 8 of the United
    States Housing Act of 1937 on a fair share basis and administered by
    public housing agencies: [Provided further, That of the total amount
    provided under this heading, up to $7,000,000 shall be made available
    for the completion of the Jobs Plus Demonstration:] Provided further,
    That amounts available under this heading may be made available for
    administrative fees and other expenses to cover the cost of
    administering rental assistance programs under section 8 of the United
    States Housing Act of 1937: Provided further, That the fee otherwise
    authorized under section 8(q) of such Act shall be determined in
    accordance with section 8(q), as in effect immediately before the
    enactment of the Quality Housing and Work Responsibility Act of 1998[:
    Provided further, That $1,833,000,000 is rescinded from unobligated
    balances remaining from funds appropriated to the Department of Housing
    and Urban Development under this heading or the heading ``Annual
    Contributions for Assisted Housing'' or any other heading for fiscal
    year 2000 and prior years: Provided further, That any such balances
    governed by reallocation provisions under the statute authorizing the
    program for which the funds were originally appropriated shall not be
    available for this rescission: Provided further, That the Secretary
    shall have until September 30, 2001, to meet the rescission in the
    proviso preceding the immediately preceding proviso]: Provided further,
    That any obligated balances of contract authority that have been
    terminated shall be canceled. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0319-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Contract renewals.................       8,145      14,935      15,748
    00.02 Contract Administrator............         137         192         196
    00.03 Relocation & other................         209         326         203
    00.04 Preservation......................           1           9
    00.05 Section 514 Technical Assistance..           4          10
    00.06 Non-Elderly Disabled..............          64          56
    00.07 Welfare to Work...................         281           1
    00.08 Regional Opportunity Counseling...                      10
    00.09 Section 8 Amendment...............         334         356
    00.10 Preservation Prepayments..........           8
    00.11 Incremental vouchers..............         353         452         197
    00.12 Other.............................          57         433
    00.13 Job Plus..........................                       7
    00.14 Working Capital Fund..............                      11          13
    00.15 Section8 Counseling...............                      12
    00.16 Relocation/Replacement/Demolition.                       2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       9,593      16,812      16,357
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       3,185       2,948         643
    22.00 New budget authority (gross)......       4,852      12,082      19,917
    22.10 Resources available from
            recoveries of prior year
            obligations.....................       3,810       2,427
    22.21 Unobligated balance transferred to
            other accounts..................                      -2
    22.22 Unobligated balance transferred
            from other accounts.............         725
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      12,572      17,455      20,560
    23.95 Total new obligations.............      -9,593     -16,812     -16,357
    23.98 Unobligated balance expiring or
            withdrawn.......................         -31                      -3
    24.40 Unobligated balance carried
            forward, end of year............       2,948         643       4,200
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       7,177       9,741      15,717
    40.36   Unobligated balance rescinded...      -2,253      -1,833
    40.76   Reduction pursuant to P.L. 106-
              113...........................         -72
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                     -17
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,852       7,891      15,717
    55.00   Advance appropriation...........                   4,200
    55.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -9
                                               ---------   ---------  ----------
    55.90     Advance appropriation (total
                discretionary)..............                   4,191
          Mandatory:

    60.00   Appropriation...................                   3,000       3,000
    60.49   Portion applied to liquidate
              contract authority............                  -3,000      -3,000
    65.00   Advance appropriation...........                               4,200
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,852      12,082      19,917
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................      12,174      46,154      43,884
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................      12,174      46,154      43,884
    73.10 Total new obligations.............       9,593      16,812      16,357
    73.20 Total outlays (gross).............     -15,972     -16,655     -17,676
    73.32 Obligated balance transferred from
            other accounts..................      44,169
    73.45 Recoveries of prior year
            obligations.....................      -3,810      -2,427
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.      46,154      43,884      42,565
                                               ---------   ---------  ----------

    [[Page 483]]

    74.99     Obligated balance, end of year      46,154      43,884      42,565
    75.01 Obligated balance, start of year:
            Contract authority..............                  31,583      28,583
    75.02 Obligated balance, end of year:
            Contract authority..............      31,583      28,583      25,583
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         718         791       1,197
    86.93 Outlays from discretionary
            balances........................      15,254      15,864      16,479
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      15,972      16,655      17,676
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,852      12,082      19,917
    90.00 Outlays...........................      15,972      16,655      17,676
    ---------------------------------------------------------------------------

        The funds requested could support the following activities for 2002,
    as shown in the table below.

                            HOUSING CERTIFICATE FUND

              [Budget Authority Request for FY 2002, $ in Millions]

                                            Units   Per Unit Cost     BA
    FY 2002:
      Incremental Rental Assistance.....      33,700       5,853         197
      Tenant Protections--Housing.......      30,300          NA         203
      Contract Administrators...........          NA          NA         196
      Information Technology/Working
        Capital Fund....................                                  13
      Contract Renewals:
        PIH.............................                              10,889
        CPD-Mod. Rehab. SRO.............                                  10
        Housing.........................                      NA       4,209
                                        ------------------------------------
          Subtotal, contract renewals...                              15,108
      Administrative Fees-PIH [non-add].                 Approx.     [1,100]
          Total, FY 2002 Housing
            Certificate Fund............                              15,717
                                        ====================================

        Contract Renewals. Contract renewals provide funding to renew
    expiring Section 8 rental assistance contracts covering certificates,
    vouchers, and moderate rehabilitation (renewed as certificates or
    vouchers), Loan Management, New Construction/Substantial Rehabilitation,
    Property Disposition, and Preservation, and contracts authorized under
    section 441 of the McKinney-Vento Homeless Assistance Act. It also
    includes $46.4 million to renew funding for Family self-sufficiency
    coordinators.

        Incremental Rental Assistance. For 2002, the Department is
    requesting approximately 34,000 incremental vouchers and $197 million in
    budget authority.

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0319-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............                  31,583      28,583
    0340  Unobligated balance transferred...      31,583
    0400  Appropriation to liquidate
            contract authority..............                  -3,000      -3,000
    0700  Balance, end of year..............      31,583      28,583      25,583
    ---------------------------------------------------------------------------

    Public and Indian Housing

        Tenant Protection Vouchers. The Housing Certificate fund supports
    families living in public and assisted housing units affected by changes
    in the status of the units. Income-eligible families who are affected by
    the demolition, disposition, revitalization or other capital improvement
    through no fault of their own, receive relocation/replacement vouchers
    through the Housing Certificate Fund.

    Housing

        Tenant Protection Set-Asides. The Housing Certificate Fund also
    serves a role in supporting families in FHA-insured, privately owned
    assisted housing projects affected by changes in project status. It is
    intended that income-eligible families who, through no fault of their
    own, are affected by HUD's management of the multifamily inventory be
    aided through the Housing Certificate Fund.

        Verifying the right person gets the right benefit.--In 2002, HUD
    will continue to verify tenant reported income against other Federal
    income and other wage data, as authorized under existing statutes. This
    will help ensure that housing assistance is only provided to the extent
    entitled. It will provide greater assurance that tenants pay the proper
    amount of rent as provided under law.

        The verification program will reinforce incentives for voluntary
    reporting of income and the corresponding determination of the rent
    payment. Actions will include interest charges on under-payment of rent,
    additional financial penalties for very large amounts of under-payments,
    and routine notification to credit bureaus when amounts remain unpaid.
    HUD will amend its administrative procedures to standardized interim
    reporting policies for when a tenant must report increases and decreases
    in income. HUD will also streamline its procedures to easily reconcile
    these mismatches to actual income. When new verification procedures are
    fully implemented, HUD will reduce the existing administrative burden of
    paper verification of employment with employers to a sampling basis.

        Tenants assessed back rent will be asked to repay the amount over a
    reasonable period of time in order to ease the burden of reimbursement.
    In subsequent years, HUD envisions a system of reconciliation where
    tenant reporting would be routinely reconciled with actual income. Any
    significant overpayment or underpayment of rent would be adjusted in the
    tenant's future rental payment over the following year.

                     Section 8 Reserve Preservation Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0316-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          11
    22.21 Unobligated balance transferred to
            other accounts..................         -11
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         845
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         845
    73.31 Obligated balance transferred to
            other accounts..................        -845
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        The Section 8 Reserve Preservation Account was authorized by P.L.
    105-18. This account contained funds which were recaptured from project
    reserve accounts maintained by Housing Authorities nationwide.

        All balances in this account were transferred to the Housing
    Certificate Fund in 2000.

                    Annual Contributions For Assisted Housing

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0164-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         766
    21.49 Unobligated balance carried
            forward, start of year: Contract
            authority.......................          17
                                               ---------   ---------  ----------
    21.99   Total unobligated balance
              carried forward, start of year         783
    22.00 New budget authority (gross)......         -16
    22.21 Unobligated balance transferred to
            other accounts..................        -766
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1
    ----------------------------------------------------------------------------

    [[Page 484]]

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescinded...         -16
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         -16
          Mandatory:

    60.00   Appropriation...................       3,000
    60.49   Portion applied to liquidate
              contract authority............      -3,000
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         -16
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

            Unpaid obligations, start of
                year:
    72.40     Unpaid obligations, start of
                year........................       5,322
    72.40     Unpaid obligations, start of
                year........................      45,098
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................      50,420
    73.31 Obligated balance transferred to
            other accounts..................     -50,420
    75.01 Obligated balance, start of year:
            Contract authority..............      39,748
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -16
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0164-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............      39,765
    0340  Unobligated balance transferred...     -36,765
    0400  Appropriation to liquidate
            contract authority..............      -3,000
    ---------------------------------------------------------------------------

        The Annual Contributions for Assisted Housing account provided
    assistance for low-income housing and various other programs.

        This account has not received an appropriation for several years.
    The 2000 Appropriations Act (P.L. 106-74) transferred the unexpended
    balances from this account to other accounts.

                                 Moving to Work

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0331-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 JOBS PLUS Initiative..............           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           5
    23.95 Total new obligations.............          -5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           5
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................                       5
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................                       5
    73.10 Total new obligations.............           5
    73.20 Total outlays (gross).............                      -3
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           5
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................                       3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5
    90.00 Outlays...........................                       3
    ---------------------------------------------------------------------------

        The Moving-to-Work demonstration provides unprecedented autonomy and
    flexibility to a select group of high-performing public housing
    authorities (PHAs) in order to assess the potential impacts of Federal
    deregulation on resident households, housing developments, and local
    housing programs. Through waivers of requirements of the 1937 Housing
    Act, as amended, and related Federal regulations, participating PHAs can
    combine Federal funding allocated for public housing operating subsidy,
    capital subsidy, and Section 8 certificates and vouchers into a flexible
    housing assistance fund. By providing incentives to families that work,
    are seeking work, or are preparing for work, PHAs are also allowed to
    change administrative procedures and management policies so they can
    reallocate resources to better address local housing needs and
    priorities. No additional funding is being requested for this
    demonstration.

                           Public Housing Capital Fund

                         (including transfers of funds)

        For the Public Housing Capital Fund [Program] to carry out capital
    and management activities for public housing agencies, as authorized
    under section 9 of the United States Housing Act of 1937, as amended (42
    U.S.C. 1437), [$3,000,000,000] $2,293,400,000, to remain available until
    expended, of which up to [$50,000,000] $41,000,000 shall be for carrying
    out activities under section 9(h) of such Act, up to $500,000 shall be
    for lease adjustments to section 23 projects [and $43,000,000 shall be
    transferred to the Working Capital Fund for the development and
    maintenance of information technology systems: Provided, That no funds
    may be used under this heading for the purposes specified in section
    9(k) of the United States Housing Act of 1937: Provided further, That of
    the total amount, up to $75,000,000 shall be available for the Secretary
    of Housing and Urban Development to make grants to public housing
    agencies for emergency capital needs resulting from emergencies and
    natural disasters in fiscal year 2001]; up to $54,700,000 shall be for
    information technology; and up to $14,200,000 shall be for the provision
    of remediation services to Public Housing Agencies identified as
    ``troubled'' under the Section 8 Management Assessment Program and for
    surveys used to calculate local Fair Market Rents and assess housing
    conditions in connection with rental assistance under section 8 of the
    Housing Act of 1937. (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0304-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Capital Grants....................       3,872       4,529       2,183
    00.02 Technical Assistance..............                                  55
    00.03 Information Technology............                                  55
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       3,872       4,529       2,293
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,464       1,536
    22.00 New budget authority (gross)......       2,884       2,993       2,293
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         268
    22.22 Unobligated balance transferred
            from other accounts.............          52
    22.75 Balance of contract authority
            withdrawn.......................        -260
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,408       4,529       2,293
    23.95 Total new obligations.............      -3,872      -4,529      -2,293
    24.40 Unobligated balance carried
            forward, end of year............       1,536
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,900       3,000       2,293
    40.36   Unobligated balance rescinded...         -16
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -7
                                               ---------   ---------  ----------

    [[Page 485]]

    43.00     Appropriation (total
                discretionary)..............       2,884       2,993       2,293
          Mandatory:

    60.00   Appropriation...................                     600         589
    60.49   Portion applied to liquidate
              contract authority............                    -600        -589
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,884       2,993       2,293
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       5,201      11,837      12,648
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       5,201      11,837      12,648
    73.10 Total new obligations.............       3,872       4,529       2,293
    73.20 Total outlays (gross).............      -3,690      -3,718      -3,583
    73.32 Obligated balance transferred from
            other accounts..................       6,722
    73.45 Recoveries of prior year
            obligations.....................        -268
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.      11,837      12,648      11,358
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year      11,837      12,648      11,358
    75.01 Obligated balance, start of year:
            Contract authority..............          30       4,952       4,352
    75.02 Obligated balance, end of year:
            Contract authority..............       4,952       4,352       3,763
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          42         125         129
    86.93 Outlays from discretionary
            balances........................       3,648       3,593       3,454
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,690       3,718       3,583
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,884       2,993       2,293
    90.00 Outlays...........................       3,690       3,718       3,583
    ---------------------------------------------------------------------------

        The Public Housing Capital Fund, a comprehensive formula-driven
    program based on need, is designed to respond to the capital and
    management improvement requirements of public housing. The fund is a
    consolidation of the following programs: public housing modernization;
    public housing development; Major Reconstruction of Obsolete Public
    Housing Projects (MROP); and public housing amendments.

        Of the $2.3 billion requested for the Public Housing Capital Fund,
    $2.2 billion will assist housing authorities in carrying out capital and
    management activities and is sufficient to cover the accrual of
    additional capital needs which has been estimated at $2.1 billion
    annually. The $700 million cut to the Public Housing Capital fund will
    not reduce the number of households helped or the quality of assistance
    provided. There are over $6 billion in 2000 and prior year unspent
    Public Housing Capital balances available for this purpose. New
    regulatory tools and funding for demolition and replacement (HOPE VI)
    can be used to remove failing units from the public housing inventory.
    Such units represent a disproportionate share of the backlog. In
    addition, of the requested amount, up to $41 million is set aside for
    technical assistance including inspection of public housing units and no
    more than $55 million shall be available for information technology.

        In addition, $14.2 million will be used for program support and
    evaluation, such as contracts to determine local fair market rents,
    assessment of Section 8 housing conditions, and towards remediation
    efforts for Public Housing Agencies designated as ``troubled.''

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0304-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............          30       4,952       4,352
    0340  Unobligated balance transferred...       5,182
    0400  Appropriation to liquidate
            contract authority..............                    -600        -589
    0600  Balance of contract authority
            withdrawn.......................        -260
    0700  Balance, end of year..............       4,952       4,352       3,763
    ---------------------------------------------------------------------------

                          Public Housing Operating Fund

                         (including transfers of funds)

        For payments to public housing agencies for the operation and
    management of public housing, as authorized by section 9(e) of the
    United States Housing Act of 1937, as amended (42 U.S.C. 1437g),
    [$3,242,000,000,] $3,384,868,000 to remain available until expended, of
    which $10,000,000 shall be provided to the Office of Inspector General
    for Operation Safe Home: Provided, That no funds may be used under this
    heading for the purposes specified in section 9(k) of the United States
    Housing Act of 1937. (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0163-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating Subsidy.................       3,103       3,290       3,375
    00.02 Operation Safe Home...............                                  10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       3,103       3,290       3,385
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          12          55
    22.00 New budget authority (gross)......       3,138       3,235       3,385
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,158       3,290       3,385
    23.95 Total new obligations.............      -3,103      -3,290      -3,385
    24.40 Unobligated balance carried
            forward, end of year............          55
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       3,138       3,242       3,385
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       3,138       3,235       3,385
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       1,412       1,671       1,744
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       1,412       1,671       1,744
    73.10 Total new obligations.............       3,103       3,290       3,385
    73.20 Total outlays (gross).............      -2,836      -3,217      -3,336
    73.45 Recoveries of prior year
            obligations.....................          -8
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       1,671       1,744       1,793
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       1,671       1,744       1,793
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,437       1,553       1,625
    86.93 Outlays from discretionary
            balances........................       1,399       1,664       1,711
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,836       3,217       3,336
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,138       3,235       3,385
    90.00 Outlays...........................       2,836       3,217       3,336
    ---------------------------------------------------------------------------

        Operating subsidies are provided to public housing authorities
    (PHAs) to assist in funding the operation and maintenance expenses of
    public housing units in accordance with Section 9(e) of the United
    States Housing Act of 1937, as amended. The annual subsidy requirements
    shown reflect efforts to date to develop a new formula for the
    allocation of operating subsidies using regulatory negotiations as
    required by the Quality Housing and Work Responsibility Act of 1998. It
    is anticipated that sufficient funds will be available to provide 100
    percent of subsidy requirements in 2002.

        The following tables display the sources of housing authorities'
    expected revenue and expenditures by category for 2002. The distribution
    is based on historical data reported by housing authorities to HUD on
    the Statement of Operating Receipts and Expenditures.

    [[Page 486]]

        Table 1. Sources of Housing Authorities' Operating Revenue (in
                             millions of dollars)

                    Category                 Annual income    Percent of
                                                                 total
    Operating Subsidies.....................        $3,385             53%
    Dwelling Rental.........................        $2,572             40%
    Investment..............................          $125              2%
    Other Income............................          $318              5%
                                             -------------  --------------

       Total, Operating Revenue.............         6,400            100%
                                             -------------  --------------

        Operating Subsidies.--Represent HUD's contributions to a housing
    authority's operating budget. Under the current formula-based approach,
    HUD sets a formula-determined allowable expense level (AEL) for each PHA
    and separately computes utility and audit costs. The PHA's dwelling
    rental income is also projected and the subsidy is the difference
    between the projected AEL, utility, and audit expenses and projected
    dwelling rental income.

        Dwelling Rental.--Income derived from tenants' rents.

        Investment Income.--Income from interest earned on general fund
    investments.

        Other Income.--Includes income from other sources such as renting
    rooftop space for signs or broadcasting and from operating services for
    tenants, such as laundromats or day care centers.

     Table 2. Housing Authorities' Operating Expenditures (in millions of
                                   dollars)

                    Category                    Annual
                                              expenditures    Percent of
                                                                 total
    Utilities...............................        $1,344             21%
    Administration..........................         1,280             20%
    General Operating Expenses..............         1,088             17%
    Maintenance.............................         1,984             31%
    Tenant Services.........................            64              1%
    Protective Services.....................           192              3%
    Capital Expenditures....................           128              2%
    Operating Reserve.......................           320              5%
                                             -------------  --------------

       Total, Operating Expenses............         6,400            100%
                                             -------------  --------------

        Utilities.--Includes water, sewer, electricity, gas, fuel, and
    related labor expenses.

        Administration.--Includes administrative salaries, legal expenses,
    staff training, travel, accounting fees, auditing fees, sundry, and
    outside management costs.

        General Operating Expenses.--Includes insurance, payments made to
    local governments in lieu of taxes, terminal leave payments, employees
    benefit contributions, collection losses, interest on administrative and
    sundry notes, and other general expenses.

        Ordinary Maintenance and Operations.--Consists of expenses for
    labor, materials, contracts and garbage fees associated with the day-to-
    day operation of the public housing authority.

        Tenant Services.--Cover salaries, recreation, publication, contract
    costs, training, and other expenses.

        Protective Services.--Includes expenses for labor, materials, and
    contract costs.

        Capital Expenditures.--Includes extraordinary maintenance, casualty
    losses, and property betterments (e.g. roofs and furnaces).

        Operating reserves.--Provides working capital funds and is a reserve
    for emergencies.

                 Drug Elimination Grants for Low-Income Housing

                        [(including transfers of funds)]

        [For grants to public housing agencies and Indian tribes and their
    tribally designated housing entities for use in eliminating crime in
    public housing projects authorized by 42 U.S.C. 11901-11908, for grants
    for federally assisted low-income housing authorized by 42 U.S.C. 11909,
    and for drug information clearinghouse services authorized by 42 U.S.C.
    11921-11925, $310,000,000, to remain available until expended: Provided,
    That of the total amount provided under this heading, up to $3,000,000
    shall be solely for technical assistance, technical assistance grants,
    training, and program assessment for or on behalf of public housing
    agencies, resident organizations, and Indian tribes and their tribally
    designated housing entities (including up to $150,000 for the cost of
    necessary travel for participants in such training) for oversight,
    training and improved management of this program, $2,000,000 shall be
    available to the Boys and Girls Clubs of America for the operating and
    start-up costs of clubs located in or near, and primarily serving
    residents of, public housing and housing assisted under the Native
    American Housing Assistance and Self-Determination Act of 1996, and
    $10,000,000 shall be used in connection with efforts to combat violent
    crime in public and assisted housing under the Operation Safe Home
    Program administered by the Inspector General of the Department of
    Housing and Urban Development: Provided further, That of the amount
    under this heading, $10,000,000 shall be provided to the Office of
    Inspector General for Operation Safe Home: Provided further, That of the
    amount under this heading, $20,000,000 shall be available for the New
    Approach Anti-Drug program which will provide competitive grants to
    entities managing or operating public housing developments, federally
    assisted multifamily housing developments, or other multifamily housing
    developments for low-income families supported by non-Federal
    governmental entities or similar housing developments supported by
    nonprofit private sources in order to provide or augment security
    (including personnel costs), to assist in the investigation and/or
    prosecution of drug-related criminal activity in and around such
    developments, and to provide assistance for the development of capital
    improvements at such developments directly relating to the security of
    such developments: Provided further, That grants for the New Approach
    Anti-Drug program shall be made on a competitive basis as specified in
    section 102 of the Department of Housing and Urban Development Reform
    Act of 1989.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0197-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         383         402
    00.02 Federally Assisted Housing........          17          35
    00.03 Operation Safe Home...............          22          30
    00.04 New Approach Anti-Drug Program....          18          51
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         440         518
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         322         209
                                               ---------   ---------  ----------
    21.99   Total unobligated balance
              carried forward, start of year         322         209
    22.00 New budget authority (gross)......         310         309
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          17
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         649         518
    23.95 Total new obligations.............        -440        -518
    24.40 Unobligated balance carried
            forward, end of year............         209
                                               ---------   ---------  ----------
    24.99   Total unobligated balance
              carried forward, end of year..         209
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         310         310
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         310         309
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         316         451         653
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         316         451         653
    73.10 Total new obligations.............         440         518

    [[Page 487]]

    73.20 Total outlays (gross).............        -288        -317        -313
    73.45 Recoveries of prior year
            obligations.....................         -17
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         451         653         340
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         451         653         340
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         288         317         313
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         310         309
    90.00 Outlays...........................         288         317         313
    ---------------------------------------------------------------------------

        The Public Housing Drug Elimination Grants program was authorized in
    1988 and provided funds to Public Housing Authorities (PHAs) and
    Tribally Designated Housing Entities (TDHEs) for their anti-drug, and
    anti-crime efforts. Eligible activities included reimbursing local law
    enforcement for additional services, security contracts, investigators,
    and training residents for volunteer resident programs.

        The Budget terminates the Public Housing Drug Elimination program
    because the same types of activities (e.g., security patrols and better
    lighting) are eligible under the Public Housing Operating and Capital
    programs. The program was found to have limited impact; current
    regulatory tools, such as eviction, are effective in reducing drug-
    related crime in public housing; and finally, fighting crime and drugs
    is not directly related to HUD's core mission--it is the mission of
    federal law enforcement and other agencies whose programs help combat
    illegal drugs and crime in public housing communities.

         Revitalization of Severely Distressed Public Housing (Hope VI)

        For grants to public housing agencies for demolition, site
    revitalization, replacement housing, and tenant-based assistance grants
    to projects as authorized by section 24 of the United States Housing Act
    of 1937, [$575,000,000] $573,735,000 to remain available until expended,
    of which the Secretary may use up to [$10,000,000] $5,000,000 for
    technical assistance and contract expertise, to be provided directly or
    indirectly by grants, contracts or cooperative agreements, including
    training and cost of necessary travel for participants in such training,
    by or to officials and employees of the department and of public housing
    agencies and to residents: Provided, That none of such funds shall be
    used directly or indirectly by granting competitive advantage in awards
    to settle litigation or pay judgments, unless expressly permitted
    herein. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0218-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........         595       1,234         569
    00.02 Technical Assistance..............                                   5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         595       1,234         574
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         680         660
    22.00 New budget authority (gross)......         575         574         574
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,255       1,234         574
    23.95 Total new obligations.............        -595      -1,234        -574
    24.40 Unobligated balance carried
            forward, end of year............         660
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         575         575         574
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         575         574         574
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       2,198       2,413       3,188
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       2,198       2,413       3,188
    73.10 Total new obligations.............         595       1,234         574
    73.20 Total outlays (gross).............        -379        -460        -552
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       2,413       3,188       3,210
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       2,413       3,188       3,210
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         379         460         552
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         575         574         574
    90.00 Outlays...........................         379         460         552
    ---------------------------------------------------------------------------

        This program utilizes Federal resources to rehabilitate and restore
    severely distressed public housing projects, thereby expanding the
    supply of decent, safe, and affordable housing for low-income renters.
    The funds will be used for project demolition, hard replacement units,
    as well as tenant-based rental assistance.

                      Native American Housing Block Grants

                          (including transfer of funds)

        For the Native American Housing Block Grants program, as authorized
    under title I of the Native American Housing Assistance and Self-
    Determination Act of 1996 (NAHASDA) (Public Law 104-330), [$650,000,000]
    $648,570,000, to remain available until expended, of which [$6,000,000]
    $5,000,000 shall be to support the inspection of Indian housing units,
    contract expertise, training, and technical assistance in the training,
    oversight, and management of Indian housing and tenant-based assistance,
    including up to $300,000 for related travel ; and of which up to
    $3,000,000 shall be for information technology: Provided, That of the
    amount provided under this heading, [$6,000,000] $5,987,000 shall be
    made available for the cost of guaranteed notes and other obligations,
    as authorized by title VI of NAHASDA: Provided further, That such costs,
    including the costs of modifying such notes and other obligations, shall
    be as defined in section 502 of the Congressional Budget Act of 1974, as
    amended: Provided further, That these funds are available to subsidize
    the total principal amount of any notes and other obligations, any part
    of which is to be guaranteed, not to exceed [$54,600,000] $52,726,000:
    Provided further, That for administrative expenses to carry out the
    guaranteed loan program, up to $150,000 from amounts in the first
    proviso, which shall be transferred to and merged with the appropriation
    for ``Salaries and expenses'', to be used only for the administrative
    costs of these guarantees[: Provided further, That of the amount
    provided in this heading, $2,000,000 shall be transferred to the Working
    Capital Fund for development and maintaining information technology
    systems]. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0313-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Indian Housing Block Grants.......         617         790         635
    00.02 Title VI Loan Guarantee Subsidy...                      23           6
    00.03 Technical Assistance..............           8           9           5
    00.04 Working Capital Fund..............                       2
    00.05 Information Technology............                                   3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         625         824         649
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         175         175
    22.00 New budget authority (gross)......         620         649         649
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         800         824         649

    [[Page 488]]

    23.95 Total new obligations.............        -625        -824        -649
    24.40 Unobligated balance carried
            forward, end of year............         175
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         620         650         649
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         620         649         649
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       1,105       1,082       1,200
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       1,105       1,082       1,200
    73.10 Total new obligations.............         625         824         649
    73.20 Total outlays (gross).............        -643        -707        -669
    73.45 Recoveries of prior year
            obligations.....................          -5
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       1,082       1,200       1,180
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       1,082       1,200       1,180
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          79         204         205
    86.93 Outlays from discretionary
            balances........................         564         503         464
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         643         707         669
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         620         649         649
    90.00 Outlays...........................         643         707         669
    ---------------------------------------------------------------------------

      Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program
                              (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0313-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............           2          55          53
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....           2          55          53
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................       11.07       11.07       11.07
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...       11.07       11.07       11.07
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........                       6           6
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..                       6           6
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................                       1           3
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........                       1           3
    ---------------------------------------------------------------------------

        Title I of the Native American Housing Assistance and Self-
    Determination Act (NAHASDA) of 1996 (P.L. 104-330) authorized the Native
    American Housing Block Grant program. This program provides an
    allocation of funds on a formula basis to Indian tribes and their
    tribally designated housing entities to help them address housing needs
    within their communities. Indian tribes use performance measures and
    benchmarks that are consistent with the national goals of the program
    but can base these measures on the needs and priorities they establish
    in their own Indian housing plan.

        The Native American Housing Block Grant program includes a
    guaranteed loan provision (Title VI). A guarantee level of $53 million
    is proposed for this loan guarantee program for 2002. The subsidy rate
    for this program is set at 11.07 percent with a federal guarantee of 80
    percent. A primary goal of the Title VI program is to encourage private
    lenders to provide financing in Indian country. Therefore, the program
    provides for the federal guarantee of notes or other obligations issued
    by Indian tribes or tribally designated housing entities for the purpose
    of financing affordable housing activities described in section 202 of
    the Act.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the loan
    guarantees committed in 1998 and beyond (including modifications of
    guarantees that resulted from obligations in any given year), as well as
    administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

    Public enterprise funds:

                Low-Rent Public Housing--Loans and Other Expenses

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program: Capital
            investment loans to PHAs........           9          40          40
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................           9          40          40
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          20          20
    22.00 New budget authority (gross)......         104         110         124
    22.60 Portion applied to repay debt.....         -95         -90         -71
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          29          40          53
    23.95 Total new obligations.............          -9         -40         -40
    24.40 Unobligated balance carried
            forward, end of year............          20                      13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)          25          40          40
    69.00 Offsetting collections (cash).....          79          70          84
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         104         110         124
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         866         772         702
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         866         772         702
    73.10 Total new obligations.............           9          40          40
    73.20 Total outlays (gross).............        -103        -110        -124
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         772         702         618
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         772         702         618
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          24         110         124
    86.98 Outlays from mandatory balances...          79
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         103         110         124
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -71         -70         -84
    88.40     Non-Federal sources...........          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -79         -70         -84
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          25          40          40
    90.00 Outlays...........................          24          40          40
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,421       1,350       1,279
    1251  Repayments: Repayments and
            prepayments.....................         -71         -71         -71
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,350       1,279       1,208
    ---------------------------------------------------------------------------

    [[Page 489]]

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4098-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       3,026       2,742       2,458
    2251  Repayments and prepayments........        -284        -284        -284
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       2,742       2,458       2,174
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       2,742       2,458       2,174
    ---------------------------------------------------------------------------

        The Low-Rent Public Housing Loan Fund provides direct Federal loans
    to fund remaining Public Housing Agency and Indian Housing Authority
    construction, acquisition, and modernization activities reserved under
    the Annual Contributions appropriation through 1986. These loans are
    made from borrowings from the Treasury. Under legislation enacted during
    1986 (Public Law 99-272), the borrowings from the Treasury are forgiven
    at the end of each fiscal year and the loans to PHAs/IHAs are forgiven
    as construction, acquisition, and modernization activities are
    completed. Under the provisions of this legislation, $25 million of
    borrowings from the Treasury were forgiven in 2000, an estimated $40
    million will be borrowed from the Treasury and forgiven in 2001, and an
    estimated $40 million will be borrowed from the Treasury and forgiven in
    2002.

        Since 1987, new reservations of capital funds for construction,
    acquisition, and modernization activities have been provided directly
    from the Public Housing Capital Fund appropriations.

        Operating results.--The actual and estimated net operating income
    for 1999, 2000, 2001 and 2002 follows:

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         100            102           100            100
    0102  Expense...........................         -91            -99           -99            -99
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           9              3             1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4098-0-3-604    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         886            792           792            792
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       1,447          1,359         1,359          1,359
    1602    Interest receivable.............          89             85            85             85
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -12             -2            -2             -2
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       1,524          1,442         1,442          1,442
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       1,524          1,442         1,442          1,442
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,410          2,234         2,234          2,234
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         173            164           164            164
    2104    Resources payable to Treasury...       1,420          1,348         1,348          1,348
    2207  Non-Federal liabilities: Other....         -15              2             2              2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,578          1,514         1,514          1,514
        NET POSITION:
    3100  Appropriated capital..............         821            705           705            705
    3300  Cumulative results of operations..          11             15            15             15
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         832            720           720            720
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,410          2,234         2,234          2,234
    -----------------------------------------------------------------------------------------------

    Credit accounts:

               Indian Housing Loan Guarantee Fund Program Account

                          (including transfer of funds)

        For the cost of guaranteed loans, as authorized by section 184 of
    the Housing and Community Development Act of 1992 (106 Stat. 3739),
    [$6,000,000] $5,987,000, to remain available until expended: Provided,
    That such costs, including the costs of modifying such loans, shall be
    as defined in section 502 of the Congressional Budget Act of 1974, as
    amended: Provided further, That these funds are available to subsidize
    total loan principal, any part of which is to be guaranteed, not to
    exceed [$71,956,000] $234,283,000.
        In addition, for administrative expenses to carry out the guaranteed
    loan program, up to $200,000 from amounts in the first paragraph, which
    shall be transferred to and merged with the appropriation for ``Salaries
    and expenses'', to be used only for the administrative costs of these
    guarantees. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    0101  Indian housing loan guarantee
            fund, downward reestimates of
            subsidies.......................                       6
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........           2           6           6
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           2           6           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          13          17          17
    22.00 New budget authority (gross)......           6           6           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          19          23          23
    23.95 Total new obligations.............          -2          -6          -6
    24.40 Unobligated balance carried
            forward, end of year............          17          17          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           6           6           6
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           3           3           6
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           3           3           6
    73.10 Total new obligations.............           2           6           6
    73.20 Total outlays (gross).............          -2          -3          -7
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           3           6           5
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           3           6           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1           1
    86.93 Outlays from discretionary
            balances........................           1           2           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2           3           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           6           6
    90.00 Outlays...........................           2           3           7
    ---------------------------------------------------------------------------

      Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program
                              (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0223-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............          15          72         234
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....          15          72         234
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................        8.13        8.13        2.47
                                               ---------   ---------  ----------

    [[Page 490]]

    2329    Weighted average subsidy rate...        8.13        8.13        2.47
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........           1           6           6
    2330  Reestimation Subsidy budget
            authority.......................                      -6
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..           1                       6
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................           2           2           3
    2340  Reestimate Subsidy Outlays........                      -6
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           2          -4           3
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the loan
    guarantees committed in 1992 and beyond (including modifications of
    guarantees that resulted from obligations in any year). The subsidy
    amounts are estimated on a net present value basis. The administrative
    expenses are shown on a cash basis.

        This program provides access to sources of private financing for
    Indian families, Indian tribes, and their tribally designated housing
    entities who otherwise could not acquire housing financing because of
    the unique legal status of Indian trust land.

              Indian Housing Loan Guarantee Fund Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    08.02 Re-estimate.......................                       5
    08.04 Interest on re-estimate...........                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                       6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           8           4
    22.00 New financing authority (gross)...           2           2           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           8          10           7
    23.95 Total new obligations.............                      -6
    24.40 Unobligated balance carried
            forward, end of year............           8           4           7
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Federal sources......           2           2           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                       6
    73.20 Total financing disbursements
            (gross).........................                      -6
    87.00 Total financing disbursements
            (gross).........................                       6
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                program account.............          -2          -2          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2          -2          -3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -2           4          -3
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4104-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........         135          72         234
    2112  Uncommitted loan guarantee
            limitation......................        -120         -49
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          15          23         234
    2199  Guaranteed amount of guaranteed
            loan commitments................          15          23         234
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          47          60          75
    2231  Disbursements of new guaranteed
            loans...........................          18          18          18
    2251  Repayments and prepayments........          -5          -3          -3
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................                                  -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          60          75          89
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          60          75          89
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from the loan guarantees committed in 1992 and beyond
    (including modifications of loan guarantees that resulted from
    obligations in any year). The amounts in this account are a means of
    financing and are not included in the budget totals. As required by the
    Federal Credit Reform Act of 1990, no administrative expenses can be
    recorded in the financing account.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4104-0-3-604    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           6              8             8              6
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           6              8             8              6
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           6              8             8              6
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           6              8             8              6
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           6              8             8              6
    -----------------------------------------------------------------------------------------------

              Title VI Indian Federal Guarantees Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4244-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                   1
    22.00 New financing authority (gross)...                       1           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                       1           4
    24.40 Unobligated balance carried
            forward, end of year............                       1           4
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).                       1           3
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....                       1           3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                      -1          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                      -1          -3
    ----------------------------------------------------------------------------

    [[Page 491]]

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                      -1          -3
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4244-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          55          55          53
    2112  Uncommitted loan guarantee
            limitation......................         -53
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................           2          55          53
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                       1          15
    2231  Disbursements of new guaranteed
            loans...........................           1          15          41
    2251  Repayments and prepayments........                      -1          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           1          15          53
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           1          15          53
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4244-0-3-604    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                                        1              3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                        1              3
        NET POSITION:
    3100  Appropriated capital..............                                        1              3
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............                                        1              3
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                        1              3
    -----------------------------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond (including
    modifications of loan guarantees that resulted from commitments in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals. As required by the Federal Credit Reform
    Act of 1990, no administrative expenses can be recorded in the financing
    account.

                       COMMUNITY PLANNING AND DEVELOPMENT

                                  Federal Funds

    General and special funds:

                   Housing Opportunities for Persons with AIDS

        For carrying out the Housing Opportunities for Persons with AIDS
    program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C.
    12901), [$258,000,000] $277,432,000, to remain available until expended:
    Provided, That the Secretary shall renew all expiring contracts that
    were funded under section 854(c)(3) of such Act that meet all program
    requirements before awarding funds for new contracts and activities
    authorized under this section: Provided further, That the Secretary may
    use up to [1 percent] $2,000,000 of the funds under this heading for
    training, oversight, and technical assistance activities. (Departments
    of Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
    106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0308-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing for AIDs victims..........         220         326         277
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         220         326         277
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          57          69
    22.00 New budget authority (gross)......         232         257         277
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         290         326         277
    23.95 Total new obligations.............        -220        -326        -277
    24.40 Unobligated balance carried
            forward, end of year............          69
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         232         258         277
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         232         257         277
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         436         441         551
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         436         441         551
    73.10 Total new obligations.............         220         326         277
    73.20 Total outlays (gross).............        -215        -216        -219
    73.45 Recoveries of prior year
            obligations.....................          -1
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         441         551         609
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         441         551         609
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           5           6
    86.93 Outlays from discretionary
            balances........................         214         211         213
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         215         216         219
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         232         257         277
    90.00 Outlays...........................         215         216         219
    ---------------------------------------------------------------------------

        The Housing Opportunities for Persons with AIDS program provides
    States and localities with resources and incentives to devise long-term
    comprehensive strategies for meeting the housing needs of persons with
    HIV/AIDS and their families.

        Up to $2 million is used for technical assistance to grantees.
    States and metropolitan areas receive 90 percent of the remaining funds
    by formula based on the incidence of HIV/AIDS in their jurisdictions.
    The final 10 percent is awarded competitively to States, local
    governments, and private nonprofit entities for projects of national
    significance. Awards are also made to States and local governments for
    projects in jurisdictions which do not qualify for a formula allocation.
    The requested funding for 2002 will support approximately 53,100 housing
    units for persons with HIV/AIDS and their families.

                    Community Development [Fund] Block Grants

        For assistance to units of State and local government, and to other
    entities, for economic and community development activities, and for
    other purposes, [$5,057,550,000] $4,701,993,000 to remain available
    until September 30, 2004: Provided, That of the amount provided,
    [$4,409,000,000] $4,399,300,000 is for carrying out the community
    development block grant program under title I of the Housing and
    Community Development Act of 1974, as amended (the ``Act'' herein) (42
    U.S.C. 5301)[, to remain available until September 30, 2003] : Provided
    further, That [$71,000,000] $69,000,000 shall be for grants to Indian
    tribes notwithstanding section 106(a)(1) of such Act, [$3,000,000] of
    which up to $1,250,000 shall be to implement and support Native American
    Economic Development Access Center, $2,993,000 shall be available as a
    grant to the Housing Assistance Council, [$2,600,000] $2,200,000 shall
    be available as a grant to the National American Indian Housing Council,
    $2,993,000 shall be for support of Alaska Native and Native Hawaiian
    Serving Institutions, as defined under the Higher Education Act, as
    amended, and $2,993,000 shall be available to Tribal Colleges and
    Universities to build, expand, renovate, and equip their facilities
    [$10,000,000 shall

    [[Page 492]]

    be available as a grant to the National Housing Development Corporation,
    for operating expenses not to exceed $2,000,000 and for a program of
    affordable housing acquisition and rehabilitation], and [$45,500,000]
    $38,424,000 shall be for grants pursuant to section 107 of the Act [of
    which $3,000,000 shall be made available to support Alaska Native
    serving institutions and native Hawaiian serving institutions, as
    defined under the Higher Education Act, as amended, and of which
    $3,000,000 shall be made available to tribal colleges and universities
    to build, expand, renovate, and equip their facilities]: Provided
    further, That not to exceed 20 percent of any grant made with funds
    appropriated herein (other than a grant made available in this paragraph
    to the Housing Assistance Council or the National American Indian
    Housing Council, or a grant using funds under section 107(b)(3) of the
    Housing and Community Development Act of 1974, as amended) shall be
    expended for ``Planning and Management Development'' and
    ``Administration'' as defined in regulations promulgated by the
    department: Provided further, That up to [That $15,000,000] $18,000,000
    shall be transferred to the Working Capital Fund for the development and
    maintenance of information technology systems: Provided further, That
    [$20,000,000] $21,956,000 shall be for grants pursuant to the Self Help
    Housing Opportunity Program.
        Of the amount made available under this heading, [$28,450,000]
    $29,387,000 shall be made available for capacity building, of which
    [$25,000,000] $24,945,000 shall be made available for ``Capacity
    Building for Community Development and Affordable Housing'', for LISC
    and the Enterprise Foundation for activities as authorized by section 4
    of the HUD Demonstration Act of 1993 (Public Law 103-120), as in effect
    immediately before June 12, 1997, of which not less than [$5,000,000]
    $4,989,000 of the funding shall be used in rural areas, including tribal
    areas, and of which [$3,450,000] $4,442,000 shall be made available for
    capacity building activities administered by Habitat for Humanity
    International.
        Of the amount made available under this heading, the Secretary of
    Housing and Urban Development may use up to [$55,000,000] $54,879,000
    for supportive services for public housing residents, as authorized by
    section 34 of the United States Housing Act of 1937, as amended, and for
    residents of housing assisted under the Native American Housing
    Assistance and Self-Determination Act of 1996 (NAHASDA) and for grants
    for service coordinators and congregate services for the elderly and
    disabled residents of public and assisted housing and housing assisted
    under NAHASDA.
        [Of the amount made available under this heading, $44,000,000 shall
    be available for neighborhood initiatives that are utilized to improve
    the conditions of distressed and blighted areas and neighborhoods, to
    stimulate investment, economic diversification, and community
    revitalization in areas with population outmigration or a stagnating or
    declining economic base, or to determine whether housing benefits can be
    integrated more effectively with welfare reform initiatives: Provided,
    that any unobligated balances of amounts set aside for neighborhood
    initiatives in fiscal years 1998, 1999, and 2000 may be utilized for any
    of the foregoing purposes: Provided further, That these grants shall be
    provided in accord with the terms and conditions specified in the
    statement of managers accompanying this conference report.]
        Of the amount made available under this heading, $80,000,000 is for
    grants to create or expand community technology centers in high poverty
    urban communities and to provide technical assistance to those centers.
        Of the amount made available under this heading, $20,000,000 is for
    competitive grants to community-based, civic, and religiously affiliated
    organizations which are exempt from the Americans with Disabilities Act
    and which have limited resources: Provided, That these grants shall be
    to make facilities of these organizations accessible to the disabled.
        Of the amount made available under this heading, notwithstanding any
    other provision of law, [$60,000,000] $59,868,000 shall be available for
    YouthBuild program activities authorized by subtitle D of title IV of
    the Cranston-Gonzalez National Affordable Housing Act, as amended, and
    such activities shall be an eligible activity with respect to any funds
    made available under this heading: Provided, That local YouthBuild
    programs that demonstrate an ability to leverage private and nonprofit
    funding shall be given a priority for YouthBuild funding: Provided
    further, That no more than ten percent of any grant award may be used
    for administrative costs: Provided further, That not less than
    [$10,000,000] $9,978,000 shall be available for grants to establish
    YouthBuild programs in underserved and rural areas: Provided further,
    That of the amount provided under this paragraph, [$4,000,000]
    $2,000,000 shall be set aside and made available for a grant to
    Youthbuild USA for capacity building for community development and
    affordable housing activities as specified in section 4 of the HUD
    Demonstration Act of 1993, as amended.
        [Of the amounts made available under this heading, $2,000,000 shall
    be available to the Utah Housing Finance Agency for the temporary use of
    relocatable housing during the 2002 Winter Olympic Games provided such
    housing is targeted to the housing needs of low-income families after
    the Games.]
        [Of the amount made available under this heading, $292,000,000 shall
    be available for grants for the Economic Development Initiative (EDI) to
    finance a variety of targeted economic investments in accordance with
    the terms and conditions specified in the statement of managers
    accompanying this conference report.]
        [For the cost of guaranteed loans, $29,000,000, as authorized by
    section 108 of the Housing and Community Development Act of 1974:
    Provided, That such costs, including the cost of modifying such loans,
    shall be as defined in section 502 of the Congressional Budget Act of
    1974, as amended: Provided further, That these funds are available to
    subsidize total loan principal, any part of which is to be guaranteed,
    not to exceed $1,261,000,000, notwithstanding any aggregate limitation
    on outstanding obligations guaranteed in section 108(k) of the Housing
    and Community Development Act of 1974: Provided further, That in
    addition, for administrative expenses to carry out the guaranteed loan
    program, $1,000,000, which shall be transferred to and merged with the
    appropriation for ``Salaries and expenses''.] (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
    377.)
        [For an additional amount for ``Community development fund'',
    $66,128,000 to remain available until September 30, 2003.]
        [The referenced statement of the managers in the seventh
    undesignated paragraph under this heading in title II of the Departments
    of Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2001 (Public Law 106-377) is deemed to be
    amended by striking ``West Dallas neighborhoods'' in reference to
    improvement efforts by the Pleasant Wood/Pleasant Grove Community
    Development Corporation, and inserting ``the Pleasant Grove area'' in
    lieu thereof.]
        [The unobligated amount appropriated in the third paragraph under
    the heading ``Community development block grants'' in Chapter 8 of title
    II of the Emergency Supplemental Act, 2000 (Public Law 106-246) for a
    grant to the City of Hamlet, North Carolina for demolition and removal
    of buildings and equipment destroyed by fire shall remain available
    until September 30, 2002 for a grant for such purpose to the County of
    Richmond, North Carolina.]
        [The seventh paragraph under this heading in title II of Public Law
    106-377 is amended by striking ``$292,000,000'' and inserting in lieu
    thereof $358,128,000'': Provided, That such funds shall be available for
    grants for the Economic Development Initiative (EDI) to finance a
    variety of targeted economic investments in accordance with the terms
    and conditions specified in the statement of managers accompanying this
    conference report.] (Division A, Miscellaneous Appropriations Act, 2001,
    as enacted by section 1(a)(4) of P.L. 106-554.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Community development.............       4,854       5,996       4,702
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       4,854       5,996       4,702
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         931         883
    22.00 New budget authority (gross)......       4,809       5,113       4,702
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,743       5,996       4,702
    23.95 Total new obligations.............      -4,854      -5,996      -4,702
    23.98 Unobligated balance expiring or
            withdrawn.......................          -5
    24.40 Unobligated balance carried
            forward, end of year............         883
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,800       5,124       4,702

    [[Page 493]]

    40.15   Appropriation (emergency).......          28
    40.76   Reduction pursuant to P.L. 106-
              113...........................         -19
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                     -11
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,809       5,113       4,702
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       9,013       9,074      10,130
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       9,013       9,074      10,130
    73.10 Total new obligations.............       4,854       5,996       4,702
    73.20 Total outlays (gross).............      -4,955      -4,940      -5,036
    73.31 Obligated balance transferred to
            other accounts..................         -99
    73.32 Obligated balance transferred from
            other accounts..................         269
    73.40 Adjustments in expired accounts
            (net)...........................          -4
    73.45 Recoveries of prior year
            obligations.....................          -3
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       9,074      10,130       9,796
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       9,074      10,130       9,796
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         100         102          94
    86.93 Outlays from discretionary
            balances........................       4,855       4,838       4,940
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,955       4,940       5,036
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,809       5,113       4,702
    90.00 Outlays...........................       4,955       4,940       5,036
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2000 actual  2001 est.   2002 est.
    Enacted/requested:
      Budget Authority..................       4,809       5,113       4,702
      Outlays...........................       4,955       4,940       5,034
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 100
      Outlays...........................                                  10
                                        ------------------------------------
    Total:
      Budget Authority..................       4,809       5,113       4,802
      Outlays...........................       4,955       4,940       5,044
                                        ====================================

        Title I of the Housing and Community Development Act of 1974, as
    amended, authorizes the Secretary to make grants to units of general
    local government under the Community Development Block Grant (CDBG)
    program and States to fund local community development programs.

        The 2002 Budget allocates $69 million to Indian tribes as authorized
    by Section 106(a)(1) of the Housing and Community Development Act of
    1974. Since its inception, funds made available to Native American
    communities have supported a wide variety of community development
    activities, predominantly, but not exclusively, community facilities,
    infrastructure and buildings to help meet the basic needs of low and
    moderate income community members. Since the vast majority of eligible
    tribes and Alaska Native Villages have non-existent tax bases, this
    program has helped to finance those public facilities needed to maintain
    or establish community viability. While it has had a significant impact
    on many Native American communities throughout the Nation, basic
    community development needs throughout Indian Country remain
    substantial.

        Seventy percent of CDBG formula funds are allocated to metropolitan
    cities and urban counties that receive their grants using the higher of
    two objective formulas. States and small cities receive 30 percent of
    the formula funds. The proposed level of funding for CDBG and the
    Section 108 Loan Guarantee Program will support an estimated 114,379 and
    30,000 jobs, respectively. These funds will also help to rehabilitate
    161,336 housing units.

        Section 107 Grants include funding for Insular Areas, management
    information systems support, Historically Black Colleges and
    Universities, Hispanic serving Institutions, the Community Development
    Work Study and Community Outreach Partnership Centers (COPC) programs.

        The Budget provides $80,000,000 for the new Community Technology
    Centers initiative which will enhance the existing Department of
    Education CTC program and expand the HUD Neighborhood Networks effort,
    by providing competitive grants to create or expand community technology
    centers in high poverty urban communities and provide technical
    assistance to those centers. This Community Technology Centers program
    will be administered by HUD. Eligible applicants will include State
    educational agencies, local educational agencies, institutions of higher
    education, for-profit businesses, public or private non-profit
    organizations, or a consortium of such entities that have the capacity
    to expand access to computers and related services in eligible
    communities.

        The Budget provides $20,000,000 for a new Improving Access
    Initiative that will provide grants to Americans with Disabilities Act-
    exempt community-based, civic, and religiously affiliated organizations
    with limited resources. These ADA-exempt organizations will be eligible
    to compete for grants to make their facilities accessible to the
    disabled.

        As authorized by Section 4 of the HUD Demonstration Act of 1993, the
    National Community Development Initiative (NCDI) helps build capacity of
    community-based development corporations and housing development
    organizations, and assist such corporations and organizations to carry
    out community development and affordable housing activities. The 2002
    Budget includes $29 million for this program. In addition, $3.4 million
    is set aside for Habitat for Humanity capacity building programs. Both
    programs will target their efforts to increasing minority homeownership.

        The Youthbuild program provides resources to educate, train and
    supply stipends for economically disadvantaged young adults through
    their participation in the construction and rehabilitation of housing
    for low-income and homeless persons. The program expands the supply of
    affordable housing and, at the same time, enables high school drop-outs
    to obtain the education and employment skills necessary to achieve self-
    sufficiency. The 2002 request for $60 million will provide more than
    3,774 young people with skills they need to obtain jobs. Funding of $23
    million is provided for the Self Help-Shop Program which is targeted at
    very low-income populations. In addition, $3 million each is provided
    for the Housing Assistance and Native American Indian Housing Councils
    to meet unserved rural and Native American housing needs.

        The 2002 Budget also includes $3 million in competitive grants to
    Tribal Colleges and Universities (TCU) to provide resources to build,
    expand, renovate and equip facilities. In addition, $3 million is
    provided to assist Alaska Native and Native Hawaiian Serving
    institutions. The Budget also provides $55 million for the Resident
    Opportunities and Self-Sufficiency program to help meet housing and
    related service needs to improve lives and communities served by public
    housing.

                    Community Development [Fund] Block Grants

                  (Legislative Proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-2-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Improving Access Initiative.......                                  20
    00.02 Community Technology Centers......                                  80
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 100
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 100
                                               ---------   ---------  ----------

    [[Page 494]]

    23.90   Total budgetary resources
              available for obligation......                                 100
    23.95 Total new obligations.............                                -100
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation:
    40.00     Appropriation.................                                  20
    40.00     Appropriation.................                                  80
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                 100
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                 100
    73.20 Total outlays (gross).............                                 -10
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.                                  90
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year                                  90
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 100
    90.00 Outlays...........................                                  10
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0162-2-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Grants, subsidies, and contributions:

    41.0    Grants, subsidies, and
              contributions.................                                  20
    41.0    Grants, subsidies, and
              contributions.................                                  80
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 100
    ---------------------------------------------------------------------------

                    Empowerment Zones/Enterprise Communities

        For grants in connection with a second round of empowerment zones
    and enterprise communities, [$90,000,000] $150,000,000, to remain
    available until expended[: Provided, That $75,000,000 shall be available
    for the Secretary of Housing and Urban Development], for ``Urban
    Empowerment Zones'', as authorized in the Taxpayer Relief Act of 1997,
    including [$5,000,000] $10,000,000 for each empowerment zone for use in
    conjunction with economic development activities consistent with the
    strategic plan of each empowerment zone[: Provided further, That
    $15,000,000 shall be available to the Secretary of Agriculture for
    grants for designated empowerment zones in rural areas and for grants
    for designated rural enterprise communities]. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
    377.)
        [For an additional amount for ``Empowerment zones and enterprise
    communities'', $110,000,000, to remain available until expended:
    Provided, That $185,000,000 shall be available for urban empowerment
    zones, as authorized by the Taxpayer Relief Act of 1997, including
    $12,333,333 for each empowerment zone.] (Division A, Miscellaneous
    Appropriations Act, 2001, as enacted by section 1(a)(4) of P.L. 106-
    554.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0315-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Develop urban sites...............          61         185         150
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          61         185         150
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7
    22.00 New budget authority (gross)......          55         185         150
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          62         185         150
    23.95 Total new obligations.............         -61        -185        -150
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          55         185         150
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          39          93         229
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          39          93         229
    73.10 Total new obligations.............          61         185         150
    73.20 Total outlays (gross).............          -7         -49         -92
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          93         229         287
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          93         229         287
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       4           3
    86.93 Outlays from discretionary
            balances........................           7          45          89
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7          49          92
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          55         185         150
    90.00 Outlays...........................           7          49          92
    ---------------------------------------------------------------------------

        The goal of the Empowerment Zone (EZ) initiative is to revitalize
    city neighborhoods by attracting business development and providing
    employment opportunities to residents of empowerment zones. Grant funds
    will allow the 15 urban EZs that were authorized by the Taxpayer Relief
    Act of 1997, in accordance with their strategic plans, to create
    economic opportunity in America's distressed communities, with a special
    emphasis on stimulating job creation linked to welfare reform. Flexible
    grant funds will be used to integrate human capital needs with economic
    development initiatives. Empowerment Zone principals include a strategic
    vision for change, a community-based partnership, providing economic
    opportunity and sustainable community development.

        The VA HUD Appropriations Act of 2001 (P.L. 106-377 and P.L. 106-
    554) provided $185 million for Round II Urban Empowerment Zones. The
    2002 Budget proposes $150 million for Round II urban Empowerment Zones
    that will bring the total funding for Round II urban EZs through 2002 to
    $435 million.

        Funding will be available for a broad range of activities aimed at
    assisting residents, businesses and organizations in urban EZs,
    including: community policing; health care; neighborhood development;
    brownfields clean-up and redevelopment; support for financing of capital
    projects; education; work force preparation and job creation efforts
    linked to welfare reform; leveraging private sector resources, repayment
    of debt financing by municipal bonds; financing of projects in
    conjunction with the Section 108 loan guarantee program and other
    economic development projects; support for project-based rental
    assistance; and, financing other housing activities.

        EZs are helping to stimulate billions of dollars in private
    investment, reviving inner city neighborhoods and supporting jobs, and
    helping families move from welfare to work.

        The Community Renewal and Tax Relief Act of 2000 (P.L. 106-554)
    authorized the designation of a third round of 7 urban and 2 rural
    empowerment zones. The Community Renewal and Tax Relief Act of 2000 also
    authorized the creation of a Renewal Communities program to be
    administered by HUD that will include 40 communities to be designated by
    competition by December 31, 2001.

                            Brownfields Redevelopment

        For Economic Development Grants, as authorized by section 108(q) of
    the Housing and Community Development Act of 1974, as amended, for
    Brownfields redevelopment projects, $25,000,000, to remain

    [[Page 495]]

    available until expended: Provided, That the Secretary of Housing and
    Urban Development shall make these grants available on a competitive
    basis as specified in section 102 of the Department of Housing and Urban
    Development Reform Act of 1989. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0314-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Cleanup and develop contaminated
            sites...........................          50          50          25
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          50          50          25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          50          25
    22.00 New budget authority (gross)......          25          25          25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          75          50          25
    23.95 Total new obligations.............         -50         -50         -25
    24.40 Unobligated balance carried
            forward, end of year............          25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          25          25          25
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................                      46          71
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................                      46          71
    73.10 Total new obligations.............          50          50          25
    73.20 Total outlays (gross).............          -4         -25         -30
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          46          71          66
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          46          71          66
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1           1
    86.93 Outlays from discretionary
            balances........................           4          24          29
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4          25          30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          25          25          25
    90.00 Outlays...........................           4          25          30
    ---------------------------------------------------------------------------

        The Brownfields Redevelopment initiative provides competitive
    economic development grants in conjunction with Section 108 loan
    guarantees for qualified brownfield projects. Eligible communities are
    invited to submit proposals to return contaminated sites to productive
    and employment-generating uses, with an emphasis on creating substantial
    numbers of jobs for lower-income people in physically and economically
    distressed neighborhoods.

        Grants are made in accordance with section 108(q) selection criteria
    and such other criteria deemed appropriate for brownfield projects,
    including the extent to which an applicant is currently operating a
    brownfields program and is working with appropriate environmental
    regulatory agencies.

        The Brownfields Redevelopment initiative has received annual
    appropriations of $25 million since its inception in 1998. The 2002
    request of $25 million will enable communities to reclaim and redevelop
    approximately 25 Brownfield sites.

                               Youthbuild Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0219-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           2           1
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           2           1
    73.20 Total outlays (gross).............          -1          -1
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           1
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1           1
    ---------------------------------------------------------------------------

        This program provides resources to educate, train, and provide
    stipends for economically disadvantaged young adults through their
    participation in the construction and rehabilitation of housing for low-
    income and homeless persons. The program expands the supply of
    affordable housing and, at the same time, enables high school dropouts
    to obtain the education and employment skills necessary to achieve self-
    sufficiency. The 2002 request of $60 million will provide more than
    3,774 young people with skills they need to get jobs. The Youthbuild
    program has been funded as a set-aside within the CDBG program since
    1996. The obligated balance and outlays shown above represent activity
    in the separate youthbuild account.

                      HOME Investment Partnerships Program

                          (including transfer of funds)

        For the HOME investment partnerships program, as authorized under
    title II of the Cranston-Gonzalez National Affordable Housing Act, as
    amended, [$1,800,000,000] $1,796,040,000 to remain available until
    expended[: Provided, That] , of which $200,000,000 shall be for the
    Downpayment Assistance Initiative; of which up to $20,000,000 of these
    funds shall be available for Housing Counseling under section 106 of the
    Housing and Urban Development Act of 1968[: Provided further, That
    $17,000,000] ; and of which up to $22,000,000 shall be for information
    technology projects, including $20,000,000 that  shall be transferred to
    the Working Capital Fund for the development and maintenance of
    information technology systems. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0205-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 HOME grants.......................       1,644       1,985       1,796
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,644       1,985       1,796
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         191         189
    22.00 New budget authority (gross)......       1,636       1,796       1,796
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,833       1,985       1,796
    23.95 Total new obligations.............      -1,644      -1,985      -1,796
    24.40 Unobligated balance carried
            forward, end of year............         189
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,636       1,800       1,796
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,636       1,796       1,796
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       3,947       4,107       4,356
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       3,947       4,107       4,356
    73.10 Total new obligations.............       1,644       1,985       1,796
    73.20 Total outlays (gross).............      -1,479      -1,736      -1,857

    [[Page 496]]

    73.45 Recoveries of prior year
            obligations.....................          -6
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       4,107       4,356       4,295
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       4,107       4,356       4,295
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          19          36          36
    86.93 Outlays from discretionary
            balances........................       1,460       1,700       1,821
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,479       1,736       1,857
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,636       1,796       1,796
    90.00 Outlays...........................       1,479       1,736       1,857
    ---------------------------------------------------------------------------

        The HOME Investment Partnerships program is authorized by the
    National Affordable Housing Act (P.L. 101-625). This program provides
    assistance to States and units of local government, through formula
    allocation, for the purpose of expanding the supply and affordability of
    housing. Eligible activities include acquisition, rehabilitation, and
    new construction of housing and tenant-based rental assistance. The 2002
    request will result in the production of 87,035 units of affordable
    housing through new construction, rehabilitation, or acquisition. In
    addition, tenant-based rental assistance will be provided for 10,350
    units.

        The Down Payment Assistance Initiative will assist approximately
    130,000 first-time low-income homebuyers.

        The HOME request also includes up to $22 million for information
    technology projects. Of this total, $20 million will be transferred to
    the Working Capital Fund. Funding for technical assistance is also
    included.

        Funding of $20 million for the Housing Counseling Assistance program
    is also proposed in this account. This program provides comprehensive
    housing counseling services, including pre-purchase, default, and renter
    counseling, to eligible homeowners and tenants. Up to three percent of
    these funds are set aside for housing counseling assistance for Native
    Americans.

        The Housing Counseling program was funded at $17.5 million as a HOME
    set-aside in 1999, $15 million in 2000, and $20 million in 2001. The
    2002 Budget proposes $20 million for housing counseling.

                           Homeless Assistance Grants

                          (including transfer of funds)

        For the emergency shelter grants program (as authorized under
    subtitle B of title IV of the [Stewart B.] McKinney-Vento Homeless
    Assistance Act, as amended); the supportive housing program (as
    authorized under subtitle C of title IV of such Act); the section 8
    moderate rehabilitation single room occupancy program (as authorized
    under the United States Housing Act of 1937, as amended) to assist
    homeless individuals pursuant to section 441 of the [Stewart B.]
    McKinney-Vento Homeless Assistance Act; and the shelter plus care
    program (as authorized under subtitle F of title IV of such Act),
    [$1,025,000,000] $1,022,745,000, to remain available until expended:
    Provided, That not less than 30 percent of these funds shall be used for
    permanent housing, and all funding for services must be matched by 25
    percent in funding by each grantee: Provided further, That all awards of
    assistance under this heading shall be required to coordinate and
    integrate homeless programs with other mainstream health, social
    services, and employment programs for which homeless populations may be
    eligible, including Medicaid, State Children's Health Insurance Program,
    Temporary Assistance for Needy Families, Food Stamps, and services
    funding through the Mental Health and Substance Abuse Block Grant,
    Workforce Investment Act, and the Welfare-to-Work grant program:
    Provided further, That [up to 1.5 percent] $2,500,000 of the funds
    appropriated under this heading [is transferred to the Working Capital
    Fund to be used] shall be available for technical assistance [for
    management information systems and to develop an automated, client-level
    Annual Performance Report System]: Provided further, That up to
    $11,700,000 shall be available for information technology, including the
    development of a client-level Annual Performance Report System: Provided
    further, That $500,000 shall be made available for the Interagency
    Council for the Homeless for administrative needs. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
    106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0192-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Homeless assistance grants........         882       2,363       1,023
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         882       2,363       1,023
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,072       1,340
    22.00 New budget authority (gross)......       1,020       1,023       1,023
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          25
    22.22 Unobligated balance transferred
            from other accounts.............         105
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,222       2,363       1,023
    23.95 Total new obligations.............        -882      -2,363      -1,023
    24.40 Unobligated balance carried
            forward, end of year............       1,340
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,020       1,025       1,023
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,020       1,023       1,023
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       1,867       2,510       3,873
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       1,867       2,510       3,873
    73.10 Total new obligations.............         882       2,363       1,023
    73.20 Total outlays (gross).............        -885      -1,000      -1,200
    73.32 Obligated balance transferred from
            other accounts..................         670
    73.45 Recoveries of prior year
            obligations.....................         -25
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       2,510       3,873       3,696
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       2,510       3,873       3,696
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          31          31          31
    86.93 Outlays from discretionary
            balances........................         854         969       1,169
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         885       1,000       1,200
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,020       1,023       1,023
    90.00 Outlays...........................         885       1,000       1,200
    ---------------------------------------------------------------------------

        The Homeless Assistance Grants program funds the Shelter Plus Care,
    Supportive Housing, Emergency Shelter Grants, and Section 8 Moderate
    Rehabilitation Single Room Occupancy programs. These funds will enable
    localities to continue to shape and implement comprehensive, flexible,
    coordinated ``continuum of care'' approaches to solving rather than
    institutionalizing homelessness. In fact, in recent years, many
    communities have made great strides in developing holistic continuum of
    care approaches to solving homelessness. A community-based process is
    required as part of the application process. Communities are required to
    include in their applications performance measures that contain specific
    goals that would accrue from the community's efforts, and are required
    to demonstrate tangible results on an annual basis. Requested fund

    [[Page 497]]

    ing would be available for a wide range of activities to assist homeless
    persons and prevent future homelessness. The 2002 request will fund over
    50,000 new and renewal transitional and permanent beds, all linked to
    supportive services.

        Funding is also requested for technical assistance to provide needed
    assistance to grantees to resolve problems that hinder successful
    project completion and implementation, and for management information
    systems support, including the continuing operation of tracking systems
    required by House Report 105-610.

                     Rural Housing and Economic Development

                         [(including transfer of funds)]

        [For the Office of Rural Housing and Economic Development in the
    Department of Housing and Urban Development, $25,000,000 to remain
    available until expended, which amount shall be awarded by June 1, 2001,
    to Indian tribes, State housing finance agencies, State community and/or
    economic development agencies, local rural nonprofits and community
    development corporations to support innovative housing and economic
    development activities in rural areas: Provided, That all grants shall
    be awarded on a competitive basis as specified in section 102 of the HUD
    Reform Act.] (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0324-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural Housing.....................          31          51
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          31          51
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          32          26
    22.00 New budget authority (gross)......          25          25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          57          51
    23.95 Total new obligations.............         -31         -51
    24.40 Unobligated balance carried
            forward, end of year............          26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          25          25
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................                      23          50
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................                      23          50
    73.10 Total new obligations.............          31          51
    73.20 Total outlays (gross).............          -8         -24         -25
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          23          50          25
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          23          50          25
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1
    86.93 Outlays from discretionary
            balances........................           7          23          25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8          24          25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          25          25
    90.00 Outlays...........................           8          24          25
    ---------------------------------------------------------------------------

        The 2001 VA-HUD and Independent Agencies Appropriations Act (P.L.
    106-74) provided $25 million to the Rural Housing and Economic
    Development program. This program is located in the Office of Community
    Planning and Development and is used to encourage new and innovative
    approaches to serving the housing and economic development needs of the
    nation's rural communities. The 2002 Budget proposes no new funding for
    this program.

                         Urban Development Action Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0170-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          78          68          58
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          78          68          58
    73.20 Total outlays (gross).............         -10         -10         -10
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          68          58          48
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          68          58          48
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          10          10          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          10          10          10
    ---------------------------------------------------------------------------

        Title I of the Housing and Community Development Act of 1974, as
    amended, authorized grants to distressed cities and distressed urban
    counties to fund economic development projects. The program was
    terminated in 1990.

       Capacity Building for Community Development and Affordable Housing

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0222-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          19           7
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          19           7
    73.20 Total outlays (gross).............         -12          -7
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           7
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          12           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          12           7
    ---------------------------------------------------------------------------

        As authorized by section 4 of the HUD Demonstration Act of 1993,
    this program provides funding to the National Community Development
    Initiative to build the capacity of community-based development
    corporations and housing development organizations and to assist such
    corporations and organizations to carry out community development and
    affordable housing activities. Funding for this program was provided
    under the Annual Contributions for Assisted Housing account in 1996.
    Public Law 105-18 amended authorizing legislation to include additional
    eligible recipients and provided funding for this program through a
    transfer from the Homeownership and Opportunity for People Everywhere
    Grants account in 1997. Public Law 105-65 provided funding for this
    program under the Community Development Block Grant Account in 1998.
    P.L. 105-276 provided $15 million for this program in 1999 for the two
    organizations eligible prior to the enactment of P.L. 105-18. Funding of
    $28 million was provided for this program in 2001 in Public Law 106-377
    as a set-aside within the CDBG program. $29 million is being requested
    in 2002, again as a set-aside within CDBG.

    [[Page 498]]

                        Emergency Shelter Grants Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0181-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.21 Unobligated balance transferred to
            other accounts..................          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        Title IV, subtitle B, of the McKinney-Vento Homeless Assistance Act
    (Public Law 100-77) authorizes the Secretary to make Emergency Shelter
    Grants to States and units of local government to provide emergency
    shelter and other support for the homeless. Since 1995, this assistance
    has been funded under the Homeless Assistance Grants account. The 2000
    Appropriations Act transferred all balances in this account to the
    Homeless Assistance Grants account.

                           Supportive Housing Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0188-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          35
    22.21 Unobligated balance transferred to
            other accounts..................         -35
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          96
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          96
    73.31 Obligated balance transferred to
            other accounts..................         -96
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        Title IV, subtitle C, of the McKinney-Vento Homeless Assistance Act
    authorizes assistance to promote the development of supportive housing
    and services, especially for: deinstitutionalized homeless individuals;
    homeless families with children; homeless individuals with mental
    disabilities; and other persons including those with AIDS. Such
    assistance is available for the acquisition, rehabilitation,
    construction, or leasing of structures to be used for homeless persons
    as well as to pay for operating costs and supportive services.

        Since 1995, this type of assistance has been funded under the
    Homeless Assistance Grants account. The 2000 Appropriations Act
    transferred all balances in this account to the Homeless Assistance
    Grants account.

          Supplemental Assistance for Facilities To Assist the Homeless

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0187-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.21 Unobligated balance transferred to
            other accounts..................          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        Title IV, subtitle D, of the McKinney-Vento Homeless Assistance Act
    authorized the Supplemental Assistance for Facilities To Assist the
    Homeless program (SAFAH) to provide comprehensive assistance for
    particularly innovative programs or alternative methods of meeting the
    immediate and long-term needs of the homeless. The authority for the
    SAFAH program was terminated by section 1403 of the Housing and
    Community Development Act of 1992. The 2000 Appropriations Act
    transferred all balances in this account to the Homeless Assistance
    Grants account.

                                Shelter Plus Care

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0204-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3
    22.21 Unobligated balance transferred to
            other accounts..................          -3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         228
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         228
    73.31 Obligated balance transferred to
            other accounts..................        -228
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        Title IV, subtitle F, of the McKinney-Vento Homeless Assistance Act
    authorizes the Secretary to provide rental assistance to persons with
    disabilities. Supportive services at least equal in value to the
    aggregate rental assistance must also be provided by grant recipients
    using other Federal, State, local and private resources. Eligible
    recipients include States and units of general local government.

        Since 1995, this type of assistance has been funded under the
    Homeless Assistance Grants account.

        The 2000 Appropriations Act transferred all balances in this account
    to the Homeless Assistance Grants account.

                           Shelter Plus Care Renewals

        For the renewal on an annual basis [of contracts expiring during
    fiscal years 2001 and 2002] or amendment of contracts funded under the
    Shelter Plus Care program, as authorized under subtitle F of title IV of
    the [Stewart B.] McKinney-Vento Homeless Assistance Act, as amended,
    [$100,000,000] $99,780,000, to remain available until expended:
    Provided, That each Shelter Plus Care project with an expiring contract
    shall be eligible for renewal only if the project is determined to be
    needed under the applicable continuum of care and meets appropriate
    program requirements and financial standards, as determined by the
    Secretary.  (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0232-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Renewal of Expiring Contracts.....                     100         100
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                     100         100
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     100         100
    23.95 Total new obligations.............                    -100        -100
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                     100         100
    ----------------------------------------------------------------------------

    [[Page 499]]

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................                                  89
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................                                  89
    73.10 Total new obligations.............                     100         100
    73.20 Total outlays (gross).............                     -11         -57
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.                      89         132
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year                      89         132
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      11          11
    86.93 Outlays from discretionary
            balances........................                                  46
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      11          57
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     100         100
    90.00 Outlays...........................                      11          57
    ---------------------------------------------------------------------------

        Shelter Plus Care provides rental assistance that, when combined
    with social services, supplies supportive housing for homeless people
    with disabilities and their families. Homeless people with disabilities
    often need more than shelter to live independently, such as medical care
    or other social services. Shelter Plus Care provides for a variety of
    housing choices such as group homes or individual units, coupled with a
    range of supportive services (which are funded by other sources).
    Grantees must match the rental assistance with supportive services that
    are at least equal in value to the amount of HUD's rental assistance.
    The Shelter Plus Care renewal funding will renew contracts on a one-year
    basis and will also provide funding to amend contracts that were
    previously extended but which will run out of funding.

              Innovative Homeless Initiatives Demonstration Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0221-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           9
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           9
    73.31 Obligated balance transferred to
            other accounts..................          -9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        Section 2 of the HUD Demonstration Act of 1993 authorized assistance
    for projects intended to provide a continuum of care for homeless
    persons and for innovative programs to assist homeless persons. Eligible
    recipients included States, units of local government, Indian tribes,
    and nonprofit organizations. Authorization for this program expired at
    the end of 1994. The 2000 Appropriations Act transferred all balances in
    this account to the Homeless Assistance Grants account.

            National Cities in Schools Community Development Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0220-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Grants for Schools................           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           5
    23.95 Total new obligations.............          -5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.05   Appropriation (indefinite)......           5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           5
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           1
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           1
    73.10 Total new obligations.............           5
    73.20 Total outlays (gross).............          -5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5
    90.00 Outlays...........................           5
    ---------------------------------------------------------------------------

        The Communities in Schools program, formerly known as the National
    Cities in Schools program, provides funding to empower local communities
    to work through collaborative public/private partnerships involving
    schools, public housing communities, and community organizations to
    prevent youngsters from dropping out of school, while involving youth in
    local community building, job training and neighborhood revitalization
    projects. P.L. 105-276 authorized the transfer of $5,000,000 in Annual
    Contributions for Assisted Housing recaptures to this account in 1999.
    The 2000 Appropriations Act (P.L. 106-74) provided $5 million. No
    funding was provided in 2001 and none is requested for 2002.

    Public enterprise funds:

                      Revolving Fund (Liquidating Programs)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Loan servicing....................           6           9           8
    09.03 Administrative expenses...........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           7          10           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          93          76          63
    22.00 New budget authority (gross)......          36          42          37
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.40 Capital transfer to general fund..         -50         -45         -40
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          82          73          60
    23.95 Total new obligations.............          -7         -10          -9
    24.40 Unobligated balance carried
            forward, end of year............          76          63          51
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          36          42          37
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           9           6           3
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           9           6           3
    73.10 Total new obligations.............           7          10           9
    73.20 Total outlays (gross).............          -7         -13          -9
    73.45 Recoveries of prior year
            obligations.....................          -3
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           6           3           3
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           6           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           7          13           9
    ----------------------------------------------------------------------------

    [[Page 500]]

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -36         -42         -37
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -29         -29         -28
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         175         142         109
    1251  Repayments: Repayments and
            prepayments.....................         -28         -30         -25
    1263  Write-offs for default: Direct
            loans...........................          -5          -3          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         142         109          82
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           1
    2251  Repayments and prepayments........          -1
    ---------------------------------------------------------------------------

        The Revolving fund (liquidating programs) was established by the
    Independent Offices Appropriations Act of 1955 for the efficient
    liquidation of assets acquired under a number of housing and urban
    development programs.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4015-0-3-451    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          11              5             5              5
    0102  Expense...........................          -1             -4            -4             -4
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............          10              1             1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4015-0-3-451    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         103             82            65             60
          Non-Federal assets:

    1206    Receivables, net................          20             17            16             15
    1207    Advances and prepayments........                          1
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         175            142           109             82
    1602    Interest receivable.............          16             12            11             10
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -7            -19           -17            -15
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............         184            135           103             77
    1606    Foreclosed property.............                          1             1              1
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         184            136           104             78
    1801  Other Federal assets: Cash and
            other monetary assets...........           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         308            237           186            154
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................           1              1             1              1
    2207    Other...........................           8              8             4              3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           9              9             5              4
        NET POSITION:
    3100  Appropriated capital..............         193             10            10             10
    3300  Cumulative results of operations..         106            218           171            140
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         299            228           181            150
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         308            237           186            154
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4015-0-3-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           5           7           6
    32.0  Land and structures...............           2           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           7          10           9
    ---------------------------------------------------------------------------

    Credit accounts:

              Community Development Loan Guarantees Program Account

        For the cost of guaranteed loans, $14,000,000, as authorized by
    section 108 of the Housing and Community Development Act of 1974:
    Provided, That such costs, including the cost of modifying such loans,
    shall be as defined in section 502 of the Congressional Budget Act of
    1974, as amended: Provided further, That these funds are available to
    subsidize total loan principal, any part of which is to be guaranteed,
    not to exceed $608,696,000 notwithstanding any aggregate limitation on
    outstanding obligations guaranteed in section 108(k) of the Housing and
    Community Development Act of 1974. In addition, for administrative
    expenses to carry out the guaranteed loan program, $1,000,000 which
    shall be transferred to and merged with the appropriation for ``Salaries
    and Expenses''.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0198-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Community development loan
            guarantee credit subsidy........           9          29          14
    00.09 Administrative expense............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 33.0)...................          10          30          15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          30          30          15
    23.95 Total new obligations.............         -10         -30         -15
    23.98 Unobligated balance expiring or
            withdrawn.......................         -20
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          30          30          15
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          18          22          32
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          18          22          32
    73.10 Total new obligations.............          10          30          15
    73.20 Total outlays (gross).............          -7         -20         -20
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          22          32          27
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          22          32          27
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           5           3
    86.93 Outlays from discretionary
            balances........................           5          15          17
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7          20          20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          30          15
    90.00 Outlays...........................           7          20          20
    ---------------------------------------------------------------------------

        Guaranteed Loans.--The Community Development Loan Guarantee program
    (Section 108) has a proposed commitment

    [[Page 501]]

    level of $609 million in 2002. The credit subsidy/administrative cost
    estimate for the guaranteed loan program is $15 million in 2002.

        Section 108 loan guarantees are used by Community Development Block
    Grant entitlement and nonentitlement communities (assisted by their
    State) to cover the cost of: acquiring real property; rehabilitating
    publicly owned real property; housing rehabilitation; and, certain other
    economic development activities. In addition, Section 108 has, in some
    cases, been used to finance the construction of housing by nonprofit
    organizations.

      Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program
                              (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0198-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............       1,261       1,258         609
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....       1,261       1,258         609
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................        2.30        2.30        2.30
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        2.30        2.30        2.30
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........          29          29          14
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..          29          29          14
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................           6          19          19
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........           6          19          19
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           1           1           1
    3580  Outlays from balances.............
    3590  Outlays from new authority........           1           1           1
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the loan
    guarantees committed in 1992 and beyond (including modifications of
    direct loans or loan guarantees that resulted from obligations or
    commitments in any year), as well as administrative expenses of this
    program. The subsidy amounts are estimated on a present value basis; the
    administrative expenses are estimated on a cash basis.

             Community Development Loan Guarantees Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          16          22          44
    22.00 New financing authority (gross)...           7          21          22
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          23          43          66
    24.40 Unobligated balance carried
            forward, end of year............          22          44          67
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............           7          21          22
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -6         -19         -19
    88.25     Interest on uninvested funds..          -1          -2          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -7         -21         -22
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -7         -21         -22
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4096-0-3-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       1,261       1,258         609
    2112  Uncommitted loan guarantee
            limitation......................        -849
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         412       1,258         609
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       1,509       1,692       1,942
    2231  Disbursements of new guaranteed
            loans...........................         322         500         400
    2251  Repayments and prepayments........        -139        -250        -200
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       1,692       1,942       2,142
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       1,692       1,942       2,142
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4096-0-3-451    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          16             22            44             67
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          16             22            44             67
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.          16             22            44             67
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          16             22            44             67
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          16             22            44             67
    -----------------------------------------------------------------------------------------------

        Guaranteed loans.--The Community Development Loan Guarantees program
    provides a mechanism for the Federal guarantee of private loans. There
    is an accompanying liquidating account which shows activity for Federal
    Financing Bank (FFB) direct loan activity, obligated prior to July 1,
    1986. Also following is a status of privately financed guaranteed loan
    commitments made prior to 1992.

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond (including
    modifications of loan guaran- tees that resulted from commitments in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals. As required by the Federal Credit Reform
    Act of 1990, no administrative expenses can be recorded in the financing
    account.

            Community Development Loan Guarantees Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           4
    22.40 Capital transfer to general fund..         134
    22.70 Balance of authority to borrow
            withdrawn.......................        -138
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           7           4           4
    69.27   Capital transfer to general fund          -3          -4          -4
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           4
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         134         134         134
                                               ---------   ---------  ----------

    [[Page 502]]

    72.99     Obligated balance, start of
                year........................         134         134         134
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         134         134         134
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         134         134         134
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -7          -4          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -3          -4          -4
    90.00 Outlays...........................          -7          -4          -4
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          13          13          13
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          13          13          13
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4097-0-3-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         134         107          82
    2251  Repayments and prepayments........         -27         -25         -23
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         107          82          59
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         107          82          59
    ---------------------------------------------------------------------------

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4097-0-3-451    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           8              2             2              2
    0102  Expense...........................          -8             -2            -2             -2
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4097-0-3-451    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          -4
            Investments in US securities:
    1106      Receivables, net..............          11
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1701    Defaulted guaranteed loans,
              gross.........................          13             11            11             11
    1702    Interest receivable.............           4
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............          17             11            11             11
    1901  Other Federal assets: Other assets         139
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         163             11            11             11
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................                         11            11             11
    2105    Other...........................          14
    2201  Non-Federal liabilities: Accounts
            payable.........................         149
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         163             11            11             11
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         163             11            11             11
    -----------------------------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records all cash flows to and from the Government resulting from Federal
    Financing Bank (FFB) direct loans for which loan guarantees were
    committed prior to 1992. This account is shown on a cash basis.

        Guaranteed loans.--Guaranteed loan assistance under the Community
    Development Loan Guarantees program is provided to eligible communities
    to finance economic development activities, housing rehabilitation,
    development or expansion of public facilities, acquisition of real
    property, rehabilitation of publicly owned real property, and certain
    related expenses. In the past, the FFB financed these guaranteed loans.
    The Consolidated Omnibus Budget Reconciliation Act of 1985 required
    private financing of all loan guarantees committed after July 1, 1986.
    FFB will continue disbursing loans for commitments approved prior to
    July 1, 1986. The activity shown in the above account reflects privately
    financed guaranteed loans for which commitments were made prior to 1992.

             America's Private Investment Companies Program Account

                           including transfer of funds

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0326-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.05   Appropriation (indefinite)......          20
    41.00   Transferred to other accounts...         -20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        The 2000 appropriation provided $20 million for America's Private
    Investment Companies (APIC) contingent upon the program's authorization.
    The program was not authorized and the funding was transferred to
    Community Development Financial Institutions. No funding was provided
    for 2001 and none is proposed for 2002.

     America's Private Investment Companies Loan Guarantee Financing Account

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4102-0-3-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........         541
    2112  Uncommitted loan guarantee
            limitation......................        -541
    ---------------------------------------------------------------------------

                                HOUSING PROGRAMS

                                  Federal Funds

    General and special funds:

                         Housing for Special Populations

                          (including transfer of funds)

        For assistance for the purchase, construction, acquisition, or
    development of additional public and subsidized housing units for low
    income families not otherwise provided for, [$996,000,000]
    $1,001,009,000, to remain available until expended: Provided, That
    [$779,000,000] $783,286,000 shall be for capital advances, including
    amendments to capital advance contracts, for housing for the elderly, as
    authorized by section 202 of the Housing Act of 1959, as amended, and
    for project rental assistance, and amendments to contracts for project
    rental assistance, for the elderly under such section 202(c)(2), and for
    supportive services associated with the housing, of which

    [[Page 503]]

    amount [$50,000,000] $49,890,000 shall be for service coordinators and
    the continuation of existing congregate service grants for residents of
    assisted housing projects, of which amount up to $3,000,000 shall be
    available to renew expiring project rental assisance contracts for up to
    a one-year term, and of which amount [$50,000,000] $49,890,000 shall be
    for grants under section 202b of the Housing Act of 1959 (12 U.S.C.
    1701q-2) for conversion of eligible projects under such section to
    assisted living or related use: Provided further, That of the amount
    under this heading, [$217,000,000] $217,723,000 shall be for capital
    advances, including amendments to capital advance contracts, for
    supportive housing for persons with disabilities, as authorized by
    section 811 of the Cranston-Gonzalez National Affordable Housing Act,
    for project rental assistance, for amendments to contracts for project
    rental assistance, and supportive services associated with the housing
    for persons with disabilities as authorized by section 811 of such Act,
    of which up to $1,200,000 shall be available to renew expiring project
    rental assistance contracts for up to a one-year term: Provided further,
    That [$1,000,000] up to $3,000,000, to be divided evenly between the
    appropriations for the section 202 and section 811 programs, shall be
    [transferred to the Working Capital Fund for the development and
    maintenance of] available for information technology [systems]: Provided
    further, That the Secretary may designate up to 25 percent of the
    amounts earmarked under this paragraph for section 811 of such Act for
    tenant-based assistance, as authorized under that section, including
    such authority as may be waived under the next proviso, which assistance
    is 5 years in duration: Provided further, That the Secretary may waive
    any provision of such section 202 and such section 811 (including the
    provisions governing the terms and conditions of project rental
    assistance and tenant-based assistance) that the Secretary determines is
    not necessary to achieve the objectives of these programs, or that
    otherwise impedes the ability to develop, operate, or administer
    projects assisted under these programs, and may make provision for
    alternative conditions or terms where appropriate. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
    106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0320-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........         937         939       1,001
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         937         939       1,001
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,749       2,760       2,817
    22.00 New budget authority (gross)......         911         994       1,001
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          37
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,697       3,754       3,818
    23.95 Total new obligations.............        -937        -939      -1,001
    24.40 Unobligated balance carried
            forward, end of year............       2,760       2,817       2,817
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         911         996       1,001
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         911         994       1,001
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................       3,799       3,978       3,929
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................       3,799       3,978       3,929
    73.10 Total new obligations.............         937         939       1,001
    73.20 Total outlays (gross).............        -720        -988      -1,025
    73.45 Recoveries of prior year
            obligations.....................         -37
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.       3,978       3,929       3,905
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year       3,978       3,929       3,905
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         720         988       1,025
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         911         994       1,001
    90.00 Outlays...........................         720         988       1,025
    ---------------------------------------------------------------------------

        This account consolidates activity under the Section 202 Housing for
    the Elderly Program and the Section 811 Housing for the Disabled
    Program. In 2002, $1,001 million is requested for the Housing for
    Special Populations account.

        Housing for the Disabled.--$217.7 million is proposed for housing
    for persons with disabilities, including language to permit up to 25
    percent of these funds to be earmarked for tenant-based assistance which
    increases the number of persons that can be assisted by maximizing the
    use of the private market.

        Housing for the Elderly.--A total of $783 million is proposed for
    housing for the elderly. Of this amount $50 million is for the capital
    grant program to convert existing 202 properties to assisted living
    under appropriate conditions. These funds for capital grants are
    available to existing HUD elderly subsidized (Section 202) projects that
    convert some or all units to Assisted Living.

        Conversion of units to assisted living will make available to low-
    income elderly, a new type of housing that Americans with higher incomes
    already benefit from in increasing numbers. Converting some Section 202
    projects to assisted living brings this successful innovation to a
    population that includes a much higher proportion of frail elderly than
    when subsidized apartment projects were first constructed. These elderly
    need additional help with various tasks in order to continue living as
    independently as possible. Projects need to be reconfigured to provide
    more congregate areas and room for additional services. As a result of
    this investment, people who otherwise would be confined to nursing homes
    and receive a higher level of care can enjoy a much greater degree of
    independence.

        $50 million is provided for a service coordinator program that will
    serve both residents of HUD-assisted elderly housing and other eligible
    elderly residing in the neighborhood in which such projects are located
    on an exception basis. These grants and the 202 program will address the
    growing housing needs of the nation's elderly.

                         Other Assisted Housing Programs

                            Rental Housing Assistance

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0206-0-1-999      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rent supplement...................           7           6           6
    00.02 Homeownership and rental housing
            assistance (Sections 235 and
            236)............................         867          60          60
    00.03 College Housing...................           1
    00.04 IRP Rehab Grants/Loans............                     100         300
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         875         166         366
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7          30         264
    21.49 Unobligated balance carried
            forward, start of year: Contract
            authority.......................       1,053       1,025       1,025
                                               ---------   ---------  ----------
    21.99   Total unobligated balance
              carried forward, start of year       1,060       1,055       1,289
    22.00 New budget authority (gross)......         818
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          73         400         200
    22.75 Balance of contract authority
            withdrawn.......................         -21
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,930       1,455       1,489
    23.95 Total new obligations.............        -875        -166        -366
    24.40 Unobligated balance carried
            forward, end of year............          30         264          98
    24.49 Unobligated balance carried
            forward, end of year: Contract
            authority.......................       1,025       1,025       1,025
                                               ---------   ---------  ----------

    [[Page 504]]

    24.99   Total unobligated balance
              carried forward, end of year..       1,055       1,289       1,123
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.05   Appropriation (indefinite)......         736         698         712
    40.36   Homeownership Assistance
              Rescission....................          -7
    40.49   Portion applied to liquidate
              contract authority............        -729        -698        -712
    49.05   Contract authority (indefinite).         818
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         818
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................      10,655      10,775       9,843
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................      10,655      10,775       9,843
    73.10 Total new obligations.............         875         166         366
    73.20 Total outlays (gross).............        -682        -698        -712
    73.45 Recoveries of prior year
            obligations.....................         -73        -400        -200
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.      10,775       9,843       9,297
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year      10,775       9,843       9,297
    75.01 Obligated balance, start of year:
            Contract authority..............      10,616      10,705      10,007
    75.02 Obligated balance, end of year:
            Contract authority..............      10,705      10,007       9,295
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................         682         698         712
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         818
    90.00 Outlays...........................         682         698         712
    ---------------------------------------------------------------------------

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0206-0-1-999      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............      11,669      11,730      11,032
        Contract authority:
    0200  Contract authority................         811
    0400  Appropriation to liquidate
            contract authority..............        -729        -698        -712
    0600  Balance of contract authority
            withdrawn.......................         -21
    0700  Balance, end of year..............      11,730      11,032      10,320
    ---------------------------------------------------------------------------

                             OTHER ASSISTED HOUSING

                      Summary of Administrative Commitments

                            (in millions of dollars)

                                         2000 actual  2001 est.   2002 est.
    Assistance contracts:
      College Housing...................           1
      Rent supplement...................           7           6           6
      Homeownership and rental housing
        assistance (sections 235 and
        236)............................         867          60          60
    IRP Rehab Grants....................           0         100         300
    Administrative commitments, start of
    year................................          16          16          16
    Administrative commitments, end of
    year................................         -16         -16         -16
                                        ------------------------------------
          Total obligations.............         875         166         366
                                        ====================================

        The Other Assisted Housing Account contains the programs listed
    below:

        Rent supplement.--Rent supplement assistance payments will continue
    to be made on behalf of qualified low-income tenants in approximately
    20,000 units which have not converted to section 8.

        Section 235.--The Housing and Urban-Rural Recovery Act of 1983
    (Public Law 98-181) authorized a restructured section 235 (Homeownership
    Assistance) program based on a 10-year interest reduction subsidy. This
    replaced earlier versions of the program, the original and the revised
    versions. All were below interest rate mortgages for single family
    homes.

        Section 236.--The Housing and Urban Development Act of 1968, as
    amended, authorizes the section 236 Rental Housing Assistance Program
    which subsidizes the monthly mortgage payment that an owner of a rental
    or cooperative project is required to make. This interest subsidy
    reduces rents for lower income tenants.

        IRP Rehab Grants.--Title V of the 1998 Appropriations Act (P.L. 105-
    65) establishes a program of rehabilitation grants for owners of
    eligible projects. An estimated $300 million of such grants are expected
    in 2001.

        The table below reflects the consolidated outlay total for: the
    Housing Certificate Fund; the Public Housing Capital Fund; and the Other
    Assisted Housing account, for 2000, 2001, and 2002.

                             SUMMARY OF OUTLAYS \1\

                            (in millions of dollars)

                                         2000 actual  2001 est.   2002 est.
    Subsidized housing programs, total..      20,344      21,071      21,960
    Low-income housing assistance (sec.
    8)..................................      15,972      16,655      17,676
    Public housing capital fund.........       3,690       3,718       3,572
    Rent supplement.....................          54          56          55
    Homeownership assistance (sec. 235).          17          16          16
    Rental housing assistance (sec. 236)         596         610         625
    College housing grants..............          15          16          16

        \1\ Includes outlays for contract renewals.

    Homeownership and Opportunity for People Everywhere Grants (HOPE Grants)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0196-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14
    22.00 New budget authority (gross)......         -19
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescinded...         -19
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          81          51          26
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          81          51          26
    73.20 Total outlays (gross).............         -25         -25         -25
    73.45 Recoveries of prior year
            obligations.....................          -5
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          51          26           1
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          51          26           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          25          25          25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -19
    90.00 Outlays...........................          25          25          25
    ---------------------------------------------------------------------------

        The Homeownership and Opportunity for People Everywhere Program
    provided affordable homeownership opportunities for low-income families.
    Units were converted to homeownership from public and Indian housing
    properties in HOPE 1, from FHA-insured and Government-held multifamily
    properties in HOPE 2, and from Government-owned or -held single family
    properties in HOPE 3. HOPE Grants were used for property acquisition,
    rehabilitation, mortgage subsidies, security measures, and technical
    assistance. In addition, grants have been devoted to counseling and
    training of residents, and other activities intended to help them become
    economically self-sufficient homeowners. No funding is being requested
    for 2002. This schedule reflects the liquidation of prior year balances.

    [[Page 505]]

                               Congregate Services

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0178-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           2
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           2
    73.20 Total outlays (gross).............          -1
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1
    ---------------------------------------------------------------------------

        Under the Congregate Services program, HUD contracted directly with
    local public housing agencies and section 202 housing for the elderly or
    disabled sponsors to supply support services, including meals and other
    services. No new funds are requested under this account. However,
    congregate services are an eligible activity in 2002 under the Community
    Develoment Block Grant program. Renewals of congregate services
    contracts for assisted housing are funded within the Housing for Special
    Populations account. This schedule reflects the liquidation of prior
    year balances from the separately appropriated Congregate Services
    Program.

                        Section 8 Moderate Rehabilitation

                              single room occupancy

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0195-0-1-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          65
    22.21 Unobligated balance transferred to
            other accounts..................         -65
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         337
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         337
    73.31 Obligated balance transferred to
            other accounts..................        -337
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        Section 8 assistance for single room occupancy dwellings is
    authorized by Title IV, subtitle E, of the McKinney-Vento Homeless
    Assistance Act, as amended by the Housing and Community Development Act
    of 1992. Since 1995, these activities have been funded in the Homeless
    Assistance Grants account. The 2000 Appropriations Act transferred all
    balances in this account to the Homeless Assistance Grants account.

                   Manufactured Home Inspection and Monitoring

                         (including transfers of funds)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5271-0-2-376      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.00 Manufactured home inspection and
            monitoring......................          11
        Appropriations:
    05.00 Manufactured home inspection and
            monitoring......................         -11
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5271-0-2-376      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Transfer to salaries and expenses.           1           1
    00.02 Other program costs...............          14           4
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          15           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9           5
    22.00 New budget authority (gross)......          11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          20           5
    23.95 Total new obligations.............         -15          -5
    24.40 Unobligated balance carried
            forward, end of year............           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.25   Appropriation (special fund,
              indefinite)...................          11
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           1           2           2
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           1           2           2
    73.10 Total new obligations.............          15           5
    73.20 Total outlays (gross).............         -14          -5          -2
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           2           2
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           9
    86.98 Outlays from mandatory balances...           5           5           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          14           5           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          11
    90.00 Outlays...........................          14           5           2
    ---------------------------------------------------------------------------

        This account provides spending for HUD and its agents for
    development of manufactured housing standards. Consistent with the
    Manufactured Housing Improvement Act of 2000, spending for 2002 on these
    activities is proposed in the Manufactured Housing Fees Trust Fund
    account.

    Public enterprise funds:

                         Rental Housing Assistance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4041-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............          19                      16
    09.01 Refunds of Excess Income..........                      17
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          19          17          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    22.00 New budget authority (gross)......          19          17          16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          20          18          17
    23.95 Total new obligations.............         -19         -17         -16
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          19          17          16
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           7          19          19
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           7          19          19
    73.10 Total new obligations.............          19          17          16

    [[Page 506]]

    73.20 Total outlays (gross).............          -7         -17         -16
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          19          19          19
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          19          19          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           7          17          16
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -19         -17         -16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -12
    ---------------------------------------------------------------------------

        The Housing and Urban Development Act of 1968 authorized the
    Secretary to establish a revolving fund into which rental collections in
    excess of the established basic rents for units in section 236
    subsidized projects would be deposited.

        The Housing and Community Development Amendment of 1978 authorized
    the Secretary, subject to approval in appropriation acts, to transfer
    excess rent collections received after 1978 to the Troubled Projects
    Operating Subsidy program, renamed the Flexible Subsidy Fund. Prior to
    that time, collections were used for paying tax and utility increases in
    section 236 projects. The Housing and Community Development Act of 1980
    amended the 1978 Act by authorizing the transfer of excess rent
    collections regardless of when collected. This Budget proposes that the
    resources from the Rental Housing Assistance Fund continue to be
    transferred to the Flexible Subsidy Fund.

                              Flexible Subsidy Fund

                               (transfer of funds)

        From the Rental Housing Assistance Fund, all uncommitted balances of
    excess rental charges as of September 30, [2000] 2001, and any
    collections made during fiscal year [2001] 2002, shall be transferred to
    the Flexible Subsidy Fund, as authorized by section 236(g) of the
    National Housing Act, as amended. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............          12          18
    09.01 Refund of Excess Income...........                      20
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          12          38
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         264         268         238
    22.00 New budget authority (gross)......          15           8          24
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         280         276         262
    23.95 Total new obligations.............         -12         -38
    24.40 Unobligated balance carried
            forward, end of year............         268         238         262
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          15           8          24
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          15           8          24
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          28          14          12
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          28          14          12
    73.10 Total new obligations.............          12          38
    73.20 Total outlays (gross).............         -17         -40         -12
    73.40 Adjustments in expired accounts
            (net)...........................          -6
    73.45 Recoveries of prior year
            obligations.....................          -1
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          14          12
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          14          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          17          40          12
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -7                     -16
    88.40     Non-Federal sources...........          -8          -8          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -15          -8         -24
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           2          32         -12
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...         205
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4044-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         761         703         648
    1231  Disbursements: Direct loan
            disbursements...................          17          20          12
    1251  Repayments: Repayments and
            prepayments.....................          -4          -4          -4
    1264  Write-offs for default: Other
            adjustments, net................         -71         -71         -71
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         703         648         585
    ---------------------------------------------------------------------------

        The Flexible Subsidy Fund assisted financially troubled subsidized
    projects under certain FHA authorities. The subsidies were intended to
    prevent potential losses to the FHA fund resulting from project
    insolvency and to preserve these projects as a viable source of housing
    for low and moderate-income tenants. Priority was given to projects with
    Federal insurance-in-force and then to those with mortgages that had
    been assigned to the Department of Housing and Urban Development.

        The budget assumes that the account will continue to serve as a
    repository of excess rental charges appropriated from the Rental Housing
    Assistance Fund. Since 1996, these resources have not been used for new
    reservations but they continue to offset Flexible Subsidy outlays and
    other discretionary expenditures. In 2000, Congress enacted legislation
    which permits excess income balances in the Rental Housing Assistance
    Fund or transferred to the Flexible Subsidy Fund to be used for refunds
    of prior excess income remittances, as permitted by law.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4044-0-3-604    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................          54            -15             1             13
    0102  Expense...........................          -1            -31           -20
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............          53            -46           -19             13
    -----------------------------------------------------------------------------------------------

    [[Page 507]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4044-0-3-604    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         108            281           266            278
            Investments in US securities:
    1102      Treasury securities, par......         205
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         786            760           776            784
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -692           -678          -698           -705
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          94             82            78             79
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         407            363           344            357
        LIABILITIES:
    2207  Non-Federal liabilities: Other....                          3             3              3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                          3             3              3
        NET POSITION:
    3100  Appropriated capital..............         217            217           217            217
    3300  Cumulative results of operations..         190            143           124            137
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         407            360           341            354
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         407            363           344            357
    -----------------------------------------------------------------------------------------------

                          Homeownership Assistance Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4043-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          23          23          23
    21.49 Unobligated balance carried
            forward, start of year: Contract
            authority.......................          61          61          61
                                               ---------   ---------  ----------
    21.99   Total unobligated balance
              carried forward, start of year          84          84          84
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          84          84          84
    24.40 Unobligated balance carried
            forward, end of year............          23          23          23
    24.49 Unobligated balance carried
            forward, end of year: Contract
            authority.......................          61          61          61
                                               ---------   ---------  ----------
    24.99   Total unobligated balance
              carried forward, end of year..          84          84          84
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

                Status of Contract Authority (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4043-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    0100  Balance, start of year............          61          61          61
    0700  Balance, end of year..............          61          61          61
    ---------------------------------------------------------------------------

        The Homeownership Assistance Fund was established by the Housing and
    Urban-Rural Recovery Act of 1983. It provided for the receipt of
    recaptures of budget authority, cash, and interest earnings under the
    restructured section 235 program. The funds were authorized to be used,
    to the extent approved in Appropriation Acts, by the Secretary to
    provide additional section 235 assistance payments for mortgagors who
    are unable to assume the full payment due under the mortgage after the
    termination of the original 10-year assistance payments contract.

                        Nehemiah Housing Opportunity Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4071-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3           3           3
    24.40 Unobligated balance carried
            forward, end of year............           3           3           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          21          16           8
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          21          16           8
    73.20 Total outlays (gross).............          -6          -8          -8
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          16           8
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          16           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           6           8           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           6           8           8
    ---------------------------------------------------------------------------

        The Nehemiah grants program was authorized by the Housing and
    Community Development Act of 1987 to provide loans to eligible families
    to assist in the purchase of new or substantially rehabilitated units.
    This schedule reflects the liquidation of remaining reserved and
    obligated balances.

    Credit accounts:

                 FHA--Mutual Mortgage Insurance Program Account

                         (including transfers of funds)

        During fiscal year [2001] 2002, commitments to guarantee loans to
    carry out the purposes of section 203(b) of the National Housing Act, as
    amended, shall not exceed a loan principal of $160,000,000,000.
        During fiscal year [2001] 2002, obligations to make direct loans to
    carry out the purposes of section 204(g) of the National Housing Act, as
    amended, shall not exceed $250,000,000: Provided, That the foregoing
    amount shall be for loans to nonprofit and governmental entities in
    connection with sales of single family real properties owned by the
    Secretary and formerly insured under the Mutual Mortgage Insurance Fund.
        For administrative expenses necessary to carry out the guaranteed
    and direct loan program, [$330,888,000] $336,700,000, of which not to
    exceed [$324,866,000] $332,678,000 shall be transferred to the
    appropriation for ``Salaries and expenses''; and not to exceed
    $4,022,000 shall be transferred to the appropriation for ``Office of
    Inspector General''. In addition, for administrative contract expenses,
    $160,000,000[, of which $96,500,000 shall be transferred to the Working
    Capital Fund for the development and maintenance of information
    technology systems]: Provided, That a combined total of up to
    $160,000,000 from amounts appropriated for administrative contract
    expenses under this head and from amounts appropriated for
    administrative contract expenses under the head, FHA--General and
    Special Risk Program Account, shall be made available for information
    technology: Provided further, That to the extent guaranteed loan
    commitments exceed $65,500,000,000 on or before April 1, [2001] 2002 an
    additional $1,400 for administrative contract expenses shall be
    available for each $1,000,000 in additional guaranteed loan commitments
    (including a pro rata amount for any amount below $1,000,000), but in no
    case shall funds made available by this proviso exceed $16,000,000.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2001, as enacted by section
    1(a)(1) of P.L. 106-377.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.22 Subsidy balance transfer..........                   4,027

    [[Page 508]]

        Appropriations:
    05.00 FHA mutual mortgage insurance
            program account.................                  -4,027
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.07 Reestimates of loan guarantee
            negative subsidy................                   3,049
    00.08 Interest on reestimates of loan
            guarantee subsidy...............                     977
    00.09 Administrative expenses, salaries
            & expenses transfer.............         329         329         337
    00.12 Non-overhead administrative
            expenses for FHA contracts......         140         160         160
    00.13 Transfer to Federal Housing Credit
            Consortium......................                       2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         469       4,517         497
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         491       4,517         497
    23.95 Total new obligations.............        -469      -4,517        -497
    23.98 Unobligated balance expiring or
            withdrawn.......................         -22
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         491         491         497
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         491         490         497
          Mandatory:

    60.25   Appropriation (special fund,
              indefinite)...................                   4,027
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         491       4,517         497
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................                     128          40
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................                     128          40
    73.10 Total new obligations.............         469       4,517         497
    73.20 Total outlays (gross).............        -341      -4,606        -496
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         128          40          41
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         128          40          41
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         341         450         456
    86.93 Outlays from discretionary
            balances........................                     128          40
    86.97 Outlays from new mandatory
            authority.......................                   4,027
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         341       4,606         496
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         491       4,517         497
    90.00 Outlays...........................         341       4,606         496
    ---------------------------------------------------------------------------

      Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program
                              (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Direct loan levels................           3         250         250
                                               ---------   ---------  ----------
    1159    Total direct loan levels........           3         250         250
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  MMI Fund, Section 203(b)..........      94,161     127,609     134,736
    2150  Standby commitment authority......      45,839      32,391      25,264
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....     140,000     160,000     160,000
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................       -1.99       -2.15       -2.07
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...       -1.99       -2.15       -2.07
        Guaranteed loan subsidy budget authority:
    2330  MMI Section 203(b) negative
            subsidy.........................      -1,864      -2,246      -2,501
    2330  Reestimates.......................                   3,350
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..      -1,864       1,104      -2,501
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays--MMI 203(b)
            negative subsidy................      -1,864      -2,006      -2,501
    2340  Subsidy outlays for net
            reestimates.....................                   3,350
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........      -1,864       1,344      -2,501
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         491         490         497
    3580  Outlays from balances.............                     128          40
    3590  Outlays from new authority........         341         451         451
    ---------------------------------------------------------------------------

        The Federal Housing Administration (FHA) provides mortgage insurance
    to encourage lenders to make credit available to expand homeownership
    and to predominantly serve borrowers that the conventional market does
    not adequately provide for including: first-time homebuyers; minorities;
    lower-income families; and, residents of underserved areas (central
    cities and rural areas).

        The Budget proposes legislation to allow FHA to insure a relatively
    new product on the mortgage market--hybrid adjustable-rate mortgages
    (ARMs). Using the conventional market as a prototype, hybrid ARMs are
    defined as adjustable-rate loans that carry an initial fixed interest
    rate for longer than one year. After the initial fixed-rate period ends,
    these loans are subject to interest rate adjustments, typically on an
    annual basis and indexed to the corresponding term Treasury bond yield.
    FHA intends to develop ARMs with a set interest rate for an initial
    period of 3, 5, 7, or 10 years, and annual interest rate adjustments
    thereafter. Hybrid ARMs will substantially enhance FHA's product line,
    offering a sound mortgage product to borrowers who do not qualify for a
    fixed-rate mortgage or cannot afford the fixed-rate pricing, but who
    want to avoid the volatility associated with traditional ARMs. This new
    product will increase loan endorsement activity by approximately 40,000
    loans, resulting in an additional $99 million in negative subsidy in
    2002.

        The Budget proposes an aggregate limitation of $160 billion on
    commitments to guarantee loans in 2002.

        As required by the Federal Credit Reform Act of 1990, this account
    records administrative expenses for this program, as well as the subsidy
    costs, if any, associated with the loan guarantees committed in 1992 and
    thereafter. The subsidy amounts are estimated on a present value basis;
    the administrative expenses are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0183-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         140         160         160
    25.3  Purchases of goods and services
            from Government accounts........         329         331         337
    41.0  Grants, subsidies, and
            contributions...................                   3,049
    43.0  Interest and dividends............                     977
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         469       4,517         497
    ---------------------------------------------------------------------------

          FHA--Mutual Mortgage Insurance Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4242-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................           3         250         250
    00.02 Interest paid to Treasury.........           1           7          25

    [[Page 509]]

    00.03 Claims & other....................                      19          23
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           4         276         298
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           9
    22.00 New financing authority (gross)...           8         276         298
    22.60 Portion applied to repay debt.....                      -7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          13         278         298
    23.95 Total new obligations.............          -4        -276        -298
    24.40 Unobligated balance carried
            forward, end of year............           9
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.05   Authority to borrow (indefinite)           3
          Mandatory:

    67.15   Authority to borrow (indefinite)                     250         250
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).           9          79         160
    68.47     Portion applied to repay debt.          -4         -53        -112
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....           5          26          48
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           8         276         298
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           3           4          31
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           3           4          31
    73.10 Total new obligations.............           4         276         298
    73.20 Total financing disbursements
            (gross).........................          -4        -249        -296
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           4          31          33
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           4          31          33
    87.00 Total financing disbursements
            (gross).........................           4         249         296
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..          -1          -1          -1
              Non-Federal sources:
    88.40       Repayment of principal......          -8         -73        -145
    88.40       Repayment of interest.......                      -5         -14
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -9         -79        -160
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          -1         197         138
    90.00 Financing disbursements...........          -5         170         136
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and thereafter (including
    modifications of direct loans that resulted from obligations in any
    year). The amounts in this account are a means of financing and are not
    included in the budget totals.

        The $250 million in 2002 direct loan limitation in the MMI Fund
    would permit the Department to use Purchase Money Mortgages (PMMs) to
    help finance the sale of acquired single family properties. HUD would
    extend credit for these single-family homes to community nonprofit
    organizations or local government entities who would be expected to sell
    the properties to low- and moderate-income buyers. The use of PMMs
    provides a tool for State and local nonprofit organizations to use in
    revitalizing communities, and creates enhanced homeownership
    opportunities for low- and moderate-income families.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4242-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         100         250         250
    1112  Unobligated direct loan limitation         -97
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           3         250         250
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           3                     177
    1231  Disbursements: Direct loan
            disbursements...................           3         248         245
          Repayments:

    1251    Repayments and prepayments......          -2         -69        -137
    1252    Proceeds from loan asset sales
              to the public or discounted...          -5
          Write-offs for default:

    1263    Direct loans....................                      -2          -3
    1264    Other adjustments, net..........           1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                     177         282
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4242-0-3-371    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           9             13            10             10
    1206  Non-Federal assets: Receivables,
            net.............................                                       13             46
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..           3             -1           177            282
    1405    Allowance for subsidy cost (-)..          -1             -1
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....           2             -2           177            282
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          11             11           200            338
        LIABILITIES:
          Federal liabilities:

    2103    Treasury borrowing..............           7             10           200            338
    2105    Other liabilites--
              intragovernmental.............           3
          Non-Federal liabilities:

    2201    Accounts payable................                          1
    2202    Interest payable................           1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          11             11           200            338
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          11             11           200            338
    -----------------------------------------------------------------------------------------------

        FHA--Mutual Mortgage Insurance Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.08 Interest payments to Treasury.....         471         479         486
    00.11 Default claims and other..........       5,586       6,103       6,203
                                               ---------   ---------  ----------
    00.91   Subtotal, capital/operating
              expenses......................       6,057       6,582       6,689
          Negative Subsidy Activity:

    08.01   Payment of negative subsidy to
              liquidating account for new
              business......................       1,864       2,246       2,501
    08.02   Reestimate of loan guarantee
              subsidy (downward reestimates)                     636
    08.04   Interest on reestimates of loan
              guarantee subsidy.............                      40
                                               ---------   ---------  ----------
    08.91   Subtotal, subsidy activity......       1,864       2,922       2,501
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       7,921       9,504       9,190
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,980       2,659       4,298
    22.00 New financing authority (gross)...       8,500      11,644       8,000
    22.60 Portion applied to repay debt.....        -900        -500      -3,000
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      10,580      13,803       9,298
    23.95 Total new obligations.............      -7,921      -9,504      -9,190
    24.40 Unobligated balance carried
            forward, end of year............       2,659       4,298         109
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)         700         200         500
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).       7,897      11,444       7,500

    [[Page 510]]

    68.10     Change in uncollected customer
                payments from Federal
                sources.....................         -97
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....       7,800      11,444       7,500
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       8,500      11,644       8,000
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          18         312         312
    72.95   Uncollected customer payments
              from program account, start of
              year..........................         -97
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         -79         312         312
    73.10 Total new obligations.............       7,921       9,504       9,190
    73.20 Total financing disbursements
            (gross).........................      -7,627      -9,504      -9,190
    74.00 Change in uncollected customer
            payments from Federal sources...          97
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         312         312         312
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         312         312         312
    87.00 Total financing disbursements
            (gross).........................       7,627       9,504       9,190
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Transfer of Reestimates from
                reserves in Liquidating
                account.....................                  -4,027
    88.25     Interest on uninvested funds..        -241        -215        -150
              Non-Federal sources:
    88.40       Fees and premiums...........      -3,239      -3,188      -3,258
    88.40       Recoveries on defaults......      -3,826      -3,622      -3,953
    88.40       Gross proceeds from asset
                  sales.....................        -209        -392        -139
    88.40       Other.......................        -382
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -7,897     -11,444      -7,500
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          97
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         700         200         500
    90.00 Financing disbursements...........        -269      -1,940       1,690
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4587-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........     140,000     160,000     160,000
    2112  Uncommitted loan guarantee
            limitation......................     -45,839     -32,391     -25,264
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................      94,161     127,609     134,736
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     355,608     401,960     468,930
    2231  Disbursements of new guaranteed
            loans...........................      86,274     106,016     119,712
    2251  Repayments and prepayments........     -34,971     -33,795     -66,695
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -55        -360        -588
    2262    Terminations for default that
              result in acquisition of
              property......................      -4,829      -4,873      -4,709
    2263    Terminations for default that
              result in claim payments......         -67         -18         -46
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     401,960     468,930     516,604
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     401,960     468,930     516,604
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......         360         102
    2331    Disbursements for guaranteed
              loan claims...................          55         360         588
    2351    Repayments of loans receivable..          -9
    2364    Other adjustments, net..........        -304        -462        -588
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         102
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loans insured in 1992 and thereafter. The amounts in this
    account are considered a means of financing and are not included in the
    budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4587-0-3-371          1999
                                               actual\1\    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       3,228          2,768         4,299            109
            Investments in US securities:
    1106      Receivables, net..............         187             91
          Non-Federal assets:

    1206    Receivables, net................          10          2,952
    1207    Advances and prepayments........           2
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         234            102
    1502    Interest receivable.............          20            725
    1504    Foreclosed property.............       2,820          1,113         2,052          2,052
    1505    Allowance for subsidy cost......      -1,148
                                            ------------ --------------  ------------  -------------
    1599      Net value of assets related to
                defaulted guaranteed loan...       1,926          1,940         2,052          2,052
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       5,353          7,751         6,351          2,161
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................       2,080          2,865
    2103    Federal liabilities, Debt.......       6,382          6,182         5,882          3,382
          Non-Federal liabilities:

    2201    Accounts payable................         102            208
    2204    Liabilities for loan guarantees.      -3,289         -1,043           206         -1,221
    2207    Other...........................          78           -461           263
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       5,353          7,751         6,351          2,161
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       5,353          7,751         6,351          2,161
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 2001 Budget.

    FHA--Mutual Mortgage and Cooperative Housing Insurance Funds Liquidating
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.03   Other operating costs...........          12          12          12
          Capital investment:

    01.02   Assignment of defaulted
              mortgages.....................          15          39         130
    01.03   Acquisition of real properties..         689         859         234
    01.05   Other obligations...............         -32
    01.07   Capitalized property expenses...         268         218         139
    01.08   Loss mitigation activities......           5          14          23
    01.09   Preforeclosure sale claims......           7          14           4
                                               ---------   ---------  ----------
    01.91     Total capital investment......         952       1,144         530
          Upward Re-estimates of Subsidy Activity:

    08.07   Reestimate of loan guarantee
              subsidy- upward re-estimates
              from MMI reserves.............                   3,049
    08.08   Interest on reestimates of loan
              guarantee subsidy.............                     977
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............                   4,026
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         964       5,182         542
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........      14,675      17,744      17,458

    [[Page 511]]

    22.00 New budget authority (gross)......       3,926       4,896       4,274
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         107
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      18,708      22,640      21,732
    23.95 Total new obligations.............        -964      -5,182        -542
    24.40 Unobligated balance carried
            forward, end of year............      17,744      17,458      21,190
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       1,864       2,246       2,501
          Mandatory:

    69.00   Offsetting collections (cash)...       1,741       2,650       1,773
    69.10   Change in uncollected acounts
              receivable from Federal
              sources.......................         321
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       2,062       2,650       1,773
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,926       4,896       4,274
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         945         917         717
    72.95   Uncollected accounts receivable
              from Federal sources, start of
              year..........................        -202        -523        -523
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         743         394         194
    73.10 Total new obligations.............         964       5,182         542
    73.20 Total outlays (gross).............        -885      -5,382        -617
    73.45 Recoveries of prior year
            obligations.....................        -107
    74.00 Change in uncollected customer
            payments from Federal sources...        -321
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         917         717         642
    74.95   Uncollected customer payments
              from Federal sources, end of
              year..........................        -523        -523        -523
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         394         194         119
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         142       1,356         423
    86.98 Outlays from mandatory balances...         743       4,026         194
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         885       5,382         617
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Payment from financing account      -1,864      -2,922      -2,501
    88.20     Interest on Federal securities        -967      -1,186      -1,315
              Non-Federal sources:
    88.40       Fees and premiums...........         -37         -47         -42
    88.40       Rebate of unearned prepaid
                  premiums collected........           2
    88.40       Proceeds from sale of real
                  property..................        -756        -693        -397
    88.40       Proceeds from sale of
                  mortgage notes............        -218         -46         -19
    88.40       Repayment of mortgage notes
                  and sales contracts.......          -1
    88.40       Interest and operating
                  income....................         -12          -2
    88.40       Recoveries on defaulted
                  mortgages.................         -12
    88.40       Other income................         260
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,605      -4,896      -4,274
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources.        -321
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................      -2,720         486      -3,657
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...      14,942      17,260      17,760
    92.02 Total investments, end of year:
            Federal securities: Par value...      17,260      17,760      21,760
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           4           3
    1251  Repayments: Repayments and
            prepayments.....................          -5          -3
    1264  Write-offs for default: Other
            adjustments, net................           4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           3
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      55,866      47,619      40,912
    2251  Repayments and prepayments........      -7,531      -5,782      -5,016
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -20         -50        -148
    2262    Terminations for default that
              result in acquisition of
              property......................        -689        -859        -234
    2263    Terminations for default that
              result in claim payments......          -7         -16          -9
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      47,619      40,912      35,505
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      47,619      40,912      35,505
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......         270          46          39
    2331    Disbursements for guaranteed
              loan claims...................          20          50         148
    2351    Repayments of loans receivable..         -14
    2361    Write-offs of loans receivable..         -42         -19         -43
    2364    Other adjustments, net..........        -188         -38        -111
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......          46          39          33
    ---------------------------------------------------------------------------

        The Federal Housing Administration Fund currently consists of four
    separate insurance funds.

        In order to present more clearly the operations of the various
    funds, FHA's budget transactions are separated into two major business
    segments. The basic single-family insurance programs in the Mutual
    Mortgage Insurance (MMI) fund and the multifamily Cooperative Management
    Housing Insurance (CMHI) funds form one segment. All other multifamily
    and other specialized insurance programs in the General Insurance and
    Special Risk Insurance funds (GI/SRI) form the other segment.

        The Federal Credit Reform Act of 1990 creates a structure of three
    accounts for existing credit program. For each of the FHA business
    segments (MMI/CMHI and GI/SRI) there is a liquidating account, which
    records the revenues and costs associated with loan insurance committed
    prior to October 1, 1991, a financing account which records the revenues
    and costs associated with commitments to insure loans made after
    September 30, 1991, and, a program account which records the
    transactions associated with the program subsidy costs, if any, and the
    costs of administering the program.

        This liquidating account records, for this program, all cash flows
    to and from the Government resulting from MMI/CMHI loans insured prior
    to 1992 and is shown on a cash basis. All new activity in this program
    in 1992 and thereafter (including modifications of loans insured in any
    year) is recorded in the corresponding program (86-0183) and financing
    (86-4587 and 86-4242) accounts.

        The program activity in the ``Program Highlights'' table shown below
    reflects only the activity in the MMI/CMHI liquidating and financing
    accounts. The GI/SRI program activity can be found with the GI/SRI
    liquidating account (86-4072).

                               PROGRAM HIGHLIGHTS

                            (in millions of dollars)

                                        2000 actual
                                             \1\      2001 est.   2002 est.
    Insurance initiation:
      Mortgage insurance commitments
        (units).........................     911,345   1,207,579   1,243,311
                                        ====================================
    Mortgage insurance written (in
        fiscal year):
      Units.............................     873,265   1,046,799   1,152,947
      Amount............................     $86,274    $106,016    $119,712
                                        ====================================

    [[Page 512]]

    Insurance maintenance: Outstanding
        balance of insurance in force,
        end of year:
      Mortgage insurance................    $449,805    $505,021    $552,684
                                        ====================================
        \1\ Unaudited preliminary results.

        Financial condition.--The following tables reflect the revenues,
    expenses and financial condition of the MMI/CMHI liquidating funds based
    on Generally Accepted Accounting Principles.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4070-0-3-371    1999 actual 2000 actual\1\     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       1,391          1,372         1,554          1,633
    0102  Expense...........................        -148           -207          -279           -259
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............       1,243          1,165         1,275          1,374
    0108  Other comprehensive income........       4,825          1,867         2,603          2,501
    -----------------------------------------------------------------------------------------------
        \1\ Estimated result on GAAP basis pending final audit.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4070-0-3-371          1999
                                               actual\1\    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         346          1,139           518            323
            Investments in US securities:
              Treasury securities, par:
    1102        Treasury securities, par....      14,942         17,260        18,260         21,760
    1102        Unamortized net premium/
                  discount..................        -213           -208          -220           -263
    1106      Receivables, net..............       2,282          2,526         2,526          2,526
          Non-Federal assets:

    1206    Receivables, net................          18             34            34             34
    1207    Advances and prepayments........          43                           43
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............           5              4
    1602    Interest receivable.............           3              2
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -4             -3            -3
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................           4              3            -3
    1701    Defaulted guaranteed loans,
              gross.........................         317             25            50              8
    1702    Interest receivable.............         322             17
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -331            -31           -62             -5
                                            ------------ --------------  ------------  -------------
    1704      Defaulted guaranteed loans and
                interest receivable, net....         308             11           -12              3
    1705    Allowance for uncollectables
              from foreclosed property......        -367
    1706    Foreclosed property.............         902            309           395             63
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............         843            320           383             66
    1901  Other Federal assets: Other assets                         14            14             14
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      18,265         21,088        21,555         24,460
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................          91             91            91             91
    2105    Other Intragovernmental
              liabilites....................          77             77            77             77
          Non-Federal liabilities:

    2201    Accounts payable................         388            726           726            726
    2204    Liabilities for loan guarantees.         669            462           370
    2207    Unearned revenue and advances,
              and other.....................         848            584           446            467
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,073          1,940         1,710          1,361
        NET POSITION:
    3300  Cumulative results of operations..      16,192         19,148        19,845         23,099
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      16,192         19,148        19,845         23,099
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      18,265         21,088        21,555         24,460
    -----------------------------------------------------------------------------------------------
        \1\ As reflected in the 2001 Budget.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4070-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         243         230         151
    32.0  Land and structures...............         689         859         234
    33.0  Investments and loans.............          20          50         148
    41.0  Grants, subsidies, and
            contributions...................                   3,049
    42.0  Insurance claims and indemnities..          12          17           9
    43.0  Interest and dividends............                     977
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         964       5,182         542
    ---------------------------------------------------------------------------

                  FHA--General and Special Risk Program Account

                         (including transfers of funds)

        For the cost of guaranteed loans, as authorized by sections 238 and
    519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), including
    the cost of loan guarantee modifications (as that term is defined in
    section 502 of the Congressional Budget Act of 1974, as amended),
    [$101,000,000] $15,000,000, to remain available until expended:
    Provided, That these funds are available to subsidize total loan
    principal, any part of which is to be guaranteed, of up to
    $21,000,000,000: Provided further, That any amounts made available in
    any prior appropriations Act for the cost (as such term is defined in
    section 502 of the Congressional Budget Act of 1974) of guaranteed loans
    that are obligations of the funds established under section 238 or 519
    of the National Housing Act that have not been obligated or that are
    deobligated shall be available to the Secretary of Housing and Urban
    Development in connection with the making of such guarantees and shall
    remain available until expended, notwithstanding the expiration of any
    period of availability otherwise applicable to such amounts.
        Gross obligations for the principal amount of direct loans, as
    authorized by sections 204(g), 207(l), 238, and 519(a) of the National
    Housing Act, shall not exceed $50,000,000; of which not to exceed
    $30,000,000 shall be for bridge financing in connection with the sale of
    multifamily real properties owned by the Secretary and formerly insured
    under such Act; and of which not to exceed $20,000,000 shall be for
    loans to nonprofit and governmental entities in connection with the sale
    of single-family real properties owned by the Secretary and formerly
    insured under such Act.
        In addition, for administrative expenses necessary to carry out the
    guaranteed and direct loan programs, [$211,455,000] $216,100,000, of
    which [$193,134,000] $197,779,000, shall be transferred to the
    appropriation for ``Salaries and expenses''; and of which $18,321,000
    shall be transferred to the appropriation for ``Office of Inspector
    General''. In addition, for administrative contract expenses necessary
    to carry out the guaranteed and direct loan programs, $144,000,000[, of
    which $33,500,000 shall be transferred to the Working Capital Fund for
    the development and maintenance of information technology systems]:
    Provided, That to the extent guaranteed loan commitments exceed
    $8,426,000,000 on or before April 1, [2001] 2002, an additional
    $19,800,000 for administrative contract expenses shall be available for
    each $1,000,000 in additional guaranteed loan commitments over
    $8,426,000,000 (including a pro rata amount for any increment below
    $1,000,000), but in no case shall funds made available by this proviso
    exceed $14,400,000. (Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)
        [For an additional amount for FHA--General and special risk program
    account for the cost of guaranteed loans, as authorized by sections 238
    and 519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c),
    including the cost of loan modifications (as that term is defined in
    section 502 of the Congressional Budget Act of 1974, as amended),
    $40,000,000, to remain available until expended: Provided, That the
    entire amount shall be available only to the extent an official budget
    request, that includes designation of the entire amount of the request
    as an emergency requirement as defined in the Balanced Budget and
    Emergency Deficit Control Act of 1985, as amended, is transmitted by the
    President to the Congress: Provided further, That the entire amount is
    designated by the Congress as an emergency requirement pursuant to
    section 251(b)(2)(A) of the

    [[Page 513]]

    Balanced Budget and Emergency Deficit Control Act: Provided further,
    That the funding under this heading shall only be made available upon
    the submission of a certification by the Secretary of Housing and Urban
    Development to the Committees on Appropriations that all funds
    committed, expended, or obligated under this heading in the Departments
    of Veterans Affairs and Housing and Urban Development, Independent
    Agencies Appropriations Act, 2000 were committed, expended or obligated
    in compliance with the Antideficiency Act (31 U.S.C. 1341).]
    (Legislative Appropriations Act, 2001, as enacted by section 1(a)(2) of
    P.L. 106-554.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    0101  FHA-General and special risk,
            negative subsidies..............          62         103         445
    0102  FHA-General and special risk,
            downward reestimates of
            subsidies.......................                     304
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........         155         141          15
    00.07 Reestimate of credit subsidy......                      33
    00.08 Interest on reestimates of loan
            guarantee subsidy...............                      13
    00.09 Administrative expenses, salaries
            & expenses transfer.............         211         211         216
    00.10 Administrative contract expenses..         116         144         144
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         482         542         375
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         250           8           1
    22.00 New budget authority (gross)......         231         541         375
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          37
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         518         549         376
    23.95 Total new obligations.............        -482        -542        -375
    23.98 Unobligated balance expiring or
            withdrawn.......................         -28          -7
    24.40 Unobligated balance carried
            forward, end of year............           8           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         231         456         375
    40.15   Appropriation (emergency).......                      40
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         231         495         375
          Mandatory:

    60.05   Appropriation (indefinite)......                      46
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         231         541         375
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          78         128         131
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          78         128         131
    73.10 Total new obligations.............         482         542         375
    73.20 Total outlays (gross).............        -395        -539        -406
    73.45 Recoveries of prior year
            obligations.....................         -37
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         128         131         100
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         128         131         100
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         204         424         335
    86.93 Outlays from discretionary
            balances........................         191          68          71
    86.97 Outlays from new mandatory
            authority.......................                      46
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         395         539         406
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         231         541         375
    90.00 Outlays...........................         395         539         406
    ---------------------------------------------------------------------------

      Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program
                              (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    1150  Single-family PMMs................                       2           2
    1150  Multifamily bridge loans..........                       2           2
    1150  Unused Limitation Authority.......          50          46          46
                                               ---------   ---------  ----------
    1159    Total direct loan levels........          50          50          50
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Apartments NC/SC..................       1,367       2,304       3,000
    2150  221d3 NP/Coop owned apts..........         103          49          67
    2150  Tax Credits NC....................         184         105         500
    2150  Mixed Income (Hope d4)............                       9           9
    2150  Apartments Refinance..............         166         912         951
    2150  241a Supplemental Loans for Apts..          29          54          18
    2150  Operating Loss Loans for Apts
            (plus 232)......................           5          13           4
    2150  HFA Risk Sharing..................         240         678         650
    2150  GSE Risk Sharing..................           2         816         100
    2150  FHA Full Insurance for Health Care
            Facilities (plus 241/232).......         702         421       1,000
    2150  Health Care Refinances............         192         336         500
    2150  Hospitals.........................          17       1,030         100
    2150  Section 234: Condominiums.........       5,175       8,137       8,482
    2150  Section 203(k): Rehabilitation
            Mortgages.......................         848       1,339       1,395
    2150  Section 221(d)(2): Low Income
            Housing.........................           9
    2150  Title 1 Property Improvements.....         258         464         216
    2150  Title 1 Manufactured housing......          11          10          11
    2150  Standby authority.................       8,792       4,323       3,997
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....      18,100      21,000      21,000
        Guaranteed loan subsidy (in percent):
    2320  Apartments NC/SR..................        7.12        3.35       -0.14
    2320  221d3 NP/Coop owned apts..........       15.44       17.22       10.30
    2320  Tax Credits NC....................       -0.57       -1.75       -2.50
    2320  Mixed Income (Hope IV)............       11.81        3.35       -0.14
    2320  Apartments Refinance..............       -1.34       -1.11       -0.97
    2320  241a Supplemental Loans for Apts..       13.88       22.08       29.31
    2320  Operating Loss Loans for Apts
            (plus 232's)....................       25.10       22.55       21.05
    2320  HFA Risk Sharing..................       -0.45       -1.14       -1.55
    2320  GSE Risk Sharing..................       -1.88       -1.52       -0.57
    2320  FHA Full Insurance for Health Care
            Facilities (plus 241/232).......       -2.79       -2.07       -2.21
    2320  Health Care Refinance.............       -1.90       -1.38       -2.54
    2320  Hospital..........................       -1.60       -1.77       -0.36
    2320  Section 234: Condominiums.........        0.26       -0.69       -1.99
    2320  Section 203(k): Rehabilitation
            Mortgages.......................        1.75       -0.11       -1.53
    2320  Section 221(d)(2): Low Income
            Housing.........................        4.49        0.00        0.00
    2320  Title 1 Property Improvements.....        0.86       -0.06        0.96
    2320  Title 1 Manufactured housing......        0.99        0.14       -0.84
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...        1.31       -0.12       -1.45
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........                     101          15
    2330  Negative Subsidy Receipts.........         -62        -103        -245
    2330  Subsidy rate upward reestimate....                      46
    2330  Subsidy rate downward reestimate..                    -304
    2330  Emergency Appropriation...........                      40
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..         -62        -220        -230
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................         160         115          36
    2340  Negative Subsidy Receipts.........         -62        -103        -245
    2340  Subsidy upward reestimate.........                      46
    2340  Subsidy rate downward reestimate..                    -304
    2340  Subsidy outlays from Emergency
            Appropriation...................                      30          10
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........          98        -216        -199
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority, S&E Transfer....          87         211         216
    3510  Budget authority, FHA.............         144         144         144
    3580  Outlays from balances.............          94          29          36
    3590  Outlays from new authority........         141         319         324
    ---------------------------------------------------------------------------

        Multifamily Products.--This account includes budget authority for
    multifamily insurance programs requiring positive credit subsidies, as
    well as for salaries and expenses and other administrative costs for all
    General and Special Risk Insurance Fund programs.

    [[Page 514]]

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the single family, multifamily, hospital, and Title I
    insurance programs of FHA's General Insurance and Special Risk Insurance
    Funds, the subsidy costs associated with the loan guarantees committed
    or direct loans obligated in 1992 and thereafter (including
    modifications of loan guarantees or direct loans that resulted from
    obligations or commitments in any year), as well as administrative
    expenses of these programs. The subsidy amounts are estimated on a
    present value basis; the administrative expenses are accounted for on a
    cash basis.

        The Budget includes an increase in the annual premium rate of
    multifamily Section 221(d)(4) loan guarantees from 50 basis points to 80
    basis points. This eliminates the need for appropriated credit subsidy
    to support this program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0200-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    25.1  Advisory and assistance services..         116         144         144
    25.3  Purchases of goods and services
            from Government accounts........         211         211         216
    41.0  Grants, subsidies, and
            contributions...................         155         187          15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         482         542         375
    ---------------------------------------------------------------------------

         FHA--General and Special Risk Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment, claims and other:

    00.01   Default claims and other........         726       1,104       1,198
    00.05   Interest paid to Treasury.......         104         120         135
    00.08   Asset sale negative subsidy
              payment to the receipt account                                 200
    00.09   Asset sale payment to
              liquidating account...........                     329         226
    00.10   Value paid to liquidating
              account for guarantees
              refinanced under 223(a)(7)....           1           3           3
    00.14   Contract Costs..................         114         100         100
                                               ---------   ---------  ----------
    00.91     Direct Program by Activities--
                Subtotal (1 level)..........         945       1,656       1,862
    08.01   Payment of negative subsidy to
              receipt account...............          62         103         445
    08.02   Downward subsidy rate reestimate                     261
    08.04   Interest on subsidy rate
              reestimates...................                      43
                                               ---------   ---------  ----------
    08.91     Direct Program by Activities--
                Subtotal (1 level)..........          62         407         445
                                               ---------   ---------  ----------
    10.00     Total new obligations.........       1,007       2,063       2,307
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,907       1,801       1,955
    22.00 New financing authority (gross)...       1,530       2,463       2,121
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          12
    22.60 Portion applied to repay debt.....        -640        -246        -246
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,809       4,018       3,830
    23.95 Total new obligations.............      -1,007      -2,063      -2,307
    24.40 Unobligated balance carried
            forward, end of year............       1,801       1,955       1,523
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)                     200         200
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).       1,464       2,263       1,921
    68.10     Change in uncollected customer
                payments from Federal
                sources.....................          66
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....       1,530       2,263       1,921
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,530       2,463       2,121
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          13          12         115
    72.95   Uncollected customer payments
              from program account, start of
              year..........................         -49        -115        -115
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         -36        -103
    73.10 Total new obligations.............       1,007       2,063       2,307
    73.20 Total financing disbursements
            (gross).........................        -997      -1,960      -2,307
    73.45 Recoveries of prior year
            obligations.....................         -12
    74.00 Change in uncollected customer
            payments from Federal sources...         -66
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          12         115         115
    74.95   Uncollected customer payments
              from program account, end of
              year..........................        -115        -115        -115
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year        -103
    87.00 Total financing disbursements
            (gross).........................         997       1,960       2,307
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Payments from program
                  account...................        -154        -141         -46
    88.00       Repayment of principal and
                  interest from liquidating
                  account...................        -273        -273         -16
    88.00       Subsidy reestimate from
                  program account...........                     -46
    88.25     Interest on uninvested funds..        -129        -135        -135
              Non-Federal sources:
    88.40       Fees and premiums...........        -386        -435        -494
    88.40       Recoveries on defaulted
                  mortgages.................         -38          -5          -9
    88.40       Title I recoveries..........         -24          -6          -6
    88.40       Single family property
                  recoveries................        -391        -383        -413
    88.40       Other recoveries............         -47
    88.40       Gross Proceeds from sale of
                  mortgage notes
                  (liquidating).............                    -329        -226
    88.40       Gross Proceeds from Mortgage
                  Note Sales................         -13        -505        -567
    88.40       Multifamily property
                  recoveries................          -9          -5          -9
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,464      -2,263      -1,921
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -66
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                     200         200
    90.00 Financing disbursements...........        -467        -303         386
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4077-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........      18,100      21,000      21,000
    2112  Uncommitted loan guarantee
            limitation......................      -8,792      -3,619      -5,478
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       9,308      17,381      15,522
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      59,692      69,128      72,845
    2231  Disbursements of new guaranteed
            loans...........................      12,507      15,175      15,732
    2251  Repayments and prepayments........      -2,344     -10,355      -8,930
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -226        -462        -526
    2262    Terminations for default that
              result in acquisition of
              property......................        -498        -641        -672
    2263    Terminations for default that
              result in claim payments......          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      69,128      72,845      78,449
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      69,128      72,845      78,449
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......         491         552         504
    2331    Disbursements for guaranteed
              loan claims...................         226         462         526
    2351    Repayments of loans receivable..         -79        -510        -577

    [[Page 515]]

    2361    Write-offs of loans receivable..         -86
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         552         504         453
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and thereafter
    (including modifications of loan guarantees that resulted from
    commitments in any year) for FHA's General and Special Risk Insurance
    Fund programs. The amounts in this account are a means of financing and
    are not included in the budget totals. As required by the Federal Credit
    Reform Act of 1990, no administrative expenses can be recorded in the
    financing account.

                               Balance Sheet\1\ (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4077-0-3-371    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....       1,897          1,698         1,633          1,663
            Investments in US securities:
    1106      Receivables, net..............         520            344
    1107      Borrowings receivable from
                liquidating account.........                                      202            202
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............          26              7
    1206    Receivables, net................           2              3
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         486            552           504            453
    1502    Interest receivable.............           5              8
    1504    Foreclosed property.............         347            225           598            598
    1505    Allowance for subsidy cost......        -541                       -1,061         -1,061
                                            ------------ --------------  ------------  -------------
    1599      Net value of assets related to
                defaulted guaranteed loan...         297            785            41            -10
    1901  Other Federal assets: Other assets          -2             -8
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,740          2,829         1,876          1,855
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable
              Intragovernmental.............           4              6
    2103    Debt............................       1,606            966           738            738
    2105    Payable to Special Receipt
              Account for Subsidy Reestimate         338            338
          Non-Federal liabilities:

    2201    Accounts payable................           8            -17
    2203    Debt............................                         -2
    2204    Liabilities for loan guarantees.         770          1,533         1,142          1,117
    2207    Other...........................          14              5
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,740          2,829         1,880          1,855
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,740          2,829         1,880          1,855
    -----------------------------------------------------------------------------------------------
        \1\ Preliminary results pending final audit. Subsidy reestimates for
    fiscal year 2000 disbursements will be performed for the Mid-Session
    review of the Budget.

           FHA--General and Special Risk Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4105-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................                       3           3
    00.02 Interest paid to Treasury.........                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                       4           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New financing authority (gross)...                       3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           3           3
    23.95 Total new obligations.............                      -4          -4
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.15   Authority to borrow (indefinite)                       3           3
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).                       1           4
    68.47     Portion applied to repay debt.                      -1          -4
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                       3           3
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                       4           4
    73.20 Total financing disbursements
            (gross).........................                      -4          -4
    87.00 Total financing disbursements
            (gross).........................                       4           4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Interest received on loans..                      -1          -1
    88.40       Repayment of Principal......                                  -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                      -1          -4
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                       2          -1
    90.00 Financing disbursements...........                       3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4105-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          50          50          50
    1112  Unobligated direct loan limitation         -50         -46         -46
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                       4           4
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           1           1           4
    1231  Disbursements: Direct loan
            disbursements...................                       4           4
    1251  Repayments: Repayments and
            prepayments.....................                      -1          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           1           4           4
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and thereafter (including
    loan modifications) for FHA's General Insurance and Special Risk
    Insurance Fund programs. The amounts in this account are a means of
    financing and are not included in the budget totals. As required by the
    Federal Credit Reform Act of 1990, no administrative expenses can be
    recorded in the financing account.

        This schedule includes two direct loan programs. One provides bridge
    loan financing to facilitate the disposition of multifamily housing
    owned by the Department to non-profit organizations who agree to
    preserve it as affordable rental or cooperative housing. The second is a
    single-family direct loan program for purchase money mortgages, as
    discussed in the preceding section for the Mutual Mortgage Insurance
    Fund.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4105-0-3-371    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..           1                            2              2
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....           1                            2              2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1                            2              2
        LIABILITIES:
          Federal liabilities:

    2103    Treasury borrowing..............           1                            1              1
    2104    Resources payable to Treasury...                                        1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1                            2              2
                                            ------------ --------------  ------------  -------------

    [[Page 516]]

    4999  Total liabilities and net position           1                            2              2
    -----------------------------------------------------------------------------------------------

              FHA--Loan Guarantee Recovery Fund--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4106-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           5
    22.00 New financing authority (gross)...                       4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           5           5
    24.40 Unobligated balance carried
            forward, end of year............           1           5           5
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                      -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                      -4
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                      -4
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4106-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........           7           4
    2113  Uncommitted limitation carried
            forward.........................          -4
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................           3           4
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           2           3           7
    2231  Disbursements of new guaranteed
            loans...........................           1           4           3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           3           7          10
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           3           7          10
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4106-0-3-371    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1102    Federal assets: Treasury
              securities, par...............           1              1             5
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1              1             5
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           1              1             5
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              1             5
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           1              1             5
    -----------------------------------------------------------------------------------------------

        Section 4 of the Church Arson Prevention Act of 1996 (P.L. 104-155),
    entitled ``Loan Guarantee Recovery Fund,'' authorizes the Secretary of
    Housing and Urban Development to guarantee loans made by financial
    institutions to assist certain nonprofit organizations that were damaged
    as a result of acts of arson or terrorism.

        FHA--General and Special Risk Insurance Funds Liquidating Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           7           7           7
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           7           7           7
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.02   Interest on debentures..........          25          22          22
    00.03   Other operating costs...........           9          18          20
    00.04   M & M Contract..................          19          10           7
    00.05   Legislative savings repayments..         273         273          16
    00.06   PAE & 3rd party restructuring
              fees..........................          10          31          26
                                               ---------   ---------  ----------
    00.91     Total operating expenses......         336         354          91
          Capital investment: Claims and other:

    01.01   Acquisition of defaulted Title I
              notes.........................          -8          12           6
    01.02   Assignment of mortgages.........         107         201         205
    01.03   Assignments per 221 G4..........         248         367         491
    01.04   Assignments-Portfolio
              Reengineering.................         110
    01.05   Mark-To-Market Restructures.....           2         570       1,275
    01.06   Mark-to-market rehabilitation...           1
    01.07   Loss on defaulted guaranteed
              loans.........................          50           3           3
    01.08   Tax advances on held mortgages..         -26          50          50
    01.09   Acquisition of real properties..         107          97          95
    01.10   Capitalized property expenses...         149         160         150
    01.11   Rehabilitation of real
              properties....................         119         130         125
    01.12   Upfront Grants..................          41          75          92
    01.13   Other...........................          -9           3           5
                                               ---------   ---------  ----------
    01.91     Total capital investment......         891       1,668       2,497
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,227       2,022       2,588
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         285       1,245
    22.00 New budget authority (gross)......       2,167       2,071       2,634
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          19
    22.40 Capital transfer to general fund..                  -1,245
    22.60 Portion applied to repay debt.....                     -49         -46
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,471       2,022       2,588
    23.95 Total new obligations.............      -1,227      -2,022      -2,588
    24.40 Unobligated balance carried
            forward, end of year............       1,245
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.05   Appropriation (indefinite)......       1,194       1,092       1,904
    67.15   Authority to borrow (debentures
              issued).......................         112          46          46
    69.00 Offsetting collections (cash).....         816         933         684
    69.10 Change in uncollected customer
            payments from Federal sources...          45
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         861         933         684
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,168       2,071       2,634
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         611         560          49
    72.95   Uncollected customer payments
              from Federal sources, start of
              year..........................          -4         -49         -49
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         607         511
    73.10 Total new obligations.............       1,227       2,022       2,588
    73.20 Total outlays (gross).............      -1,259      -2,533      -2,634
    73.45 Recoveries of prior year
            obligations.....................         -19
    74.00 Change in uncollected customer
            payments from Federal sources...         -45

    [[Page 517]]

          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         560          49           3
    74.95   Uncollected customer payments
              from Federal sources, end of
              year..........................         -49         -49         -49
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         511                     -46
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,259       2,022       2,634
    86.98 Outlays from mandatory balances...                     511
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,259       2,533       2,634
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          19
              Non-Federal sources:
    88.40       Fees and premiums...........        -141        -160        -128
    88.40       Rebates of insurance
                  premiums..................                      10          10
    88.40       Multifamily foreclosure
                  sales.....................         -75         -25         -28
    88.40       Proceeds from sale of real
                  property..................        -104        -126        -112
    88.40       Proceeds from sale of
                  mortgage notes............         -20        -329        -226
    88.40       MTM second mortgage
                  repayments................                     -10          -5
    88.40       Prior year recoveries.......         -19
    88.40       Recoveries on defaulted
                  mortgages.................        -147        -158         -82
    88.40       Interest....................         -77         -25         -25
    88.40       Other interest, dividends
                  and revenue...............         -24         -30         -30
    88.40       Modification subsidy &
                  transfers from financing
                  acct......................                      -3          -3
    88.40       Payment from the Finanacing
                  Account...................          -1          -3          -5
    88.40       Other collections...........        -227         -74         -50
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -816        -933        -684
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources.         -45
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,306       1,138       1,950
    90.00 Outlays...........................         443       1,600       1,950
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...           5           7           6
    92.02 Total investments, end of year:
            Federal securities: Par value...           7           6           6
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          68          44          20
    1251  Repayments: Repayments and
            prepayments.....................         -24         -24         -10
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          44          20          10
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      32,905      29,761      27,783
    2251  Repayments and prepayments........      -2,530      -1,571      -2,323
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -457        -208        -211
    2262    Terminations for default that
              result in acquisition of
              property......................        -107         -97         -95
    2263    Terminations for default that
              result in claim payments......         -50        -102         -81
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      29,761      27,783      25,073
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      29,761      27,783      25,073
    ----------------------------------------------------------------------------

        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       1,890       1,960       1,262
    2331    Disbursements for guaranteed
              loan claims...................         457         208         211
    2351    Repayments of loans receivable..        -324        -583        -474
    2361    Write-offs of loans receivable..         -63        -323        -687
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,960       1,262         312
    ---------------------------------------------------------------------------

        The General Insurance fund provides for a large number of
    specialized mortgage insurance programs, including the in- surance of
    loans for property improvements as well as for cooperatives,
    condominiums, nursing homes, rental housing and nonprofit hospitals.

        The Special Risk Insurance fund provides insurance on behalf of
    mortgagors who otherwise would not be eligible for mortgage insurance.
    In addition, the fund provides insurance on mortgages covering
    experimental housing where strict adherence to State or local building
    regulations was not observed.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, all cash flows to and from the Government
    resulting from loan guarantees committed and direct loans obligated
    prior to 1992. This account is shown on a cash basis. New insurance and
    direct loan activity in 1992 and thereafter in the GI/SRI programs is
    recorded in corresponding program (86-0200) and financing (86-4077 and
    86-4105) accounts.

        Section 571 of the Departments of Veterans Affairs and Housing and
    Urban Development, and Independent Agencies Appropriations Act, 1998
    established the Office of Multifamily Housing Assistance Restructuring
    within HUD to administer the program of mortgage and rental assistance
    restructuring. Included in the budget estimates for this account are
    projections for the financial operations of the office.

        Restructuring authorities under the Multifamily Assisted Housing
    Reform and Affordability Act of 1997 expire at the end of fiscal year
    2001. To facilitate efficient restructuring activity after this date,
    the Administration intends to submit legislation in the near future to
    extend and modify the expiring restructuring authorities.

        Financial Condition.--The following tables reflect the revenues,
    expenses, and financial condition of the GI/SRI Liquidating Account
    based on Generally Accepted Accounting Principles.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4072-0-3-371    1999 actual 2000 actual\1\     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         640            304           556
    0102  Expense...........................      -1,143         -1,393        -1,321
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............        -503         -1,089          -765
    -----------------------------------------------------------------------------------------------
        \1\ Preliminary results pending final audit.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4072-0-3-371          1999
                                               actual\1\    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         845          1,749
            Investments in US securities:
    1102      Treasury securities, par......           5              8
    1106      Receivables, net..............           4             45             3              3
    1107      Advances and prepayments......          20             20
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............                         -6
    1206    Receivables, net................          56            113            86             86
    1207    Advances and prepayments........           1
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............          67             44            20             10
    1602    Interest receivable.............          10              1
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -54            -33           -47            -47
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          23             12           -27            -37
    1701    Defaulted guaranteed loans,
              gross.........................       1,895          1,982         1,701          1,707
    1702    Interest receivable.............         359            215

    [[Page 518]]

    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,554         -1,347        -1,208         -1,208
                                            ------------ --------------  ------------  -------------
    1704      Defaulted guaranteed loans and
                interest receivable, net....         700            850           493            499
    1705    Allowance for uncollectables
              from foreclosed property......         652            763          -150           -150
    1706    Foreclosed property.............        -561           -663           244            244
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............         791            950           587            593
          Other Federal assets:

    1801    Funds held by the Public........          70             74
    1901    Other assets....................                          9           330
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,815          2,974           979            645
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         458            205           363            363
    2105    Other Liabilities...............          44             20
          Non-Federal liabilities:

    2201    Accounts payable................         161            353           443            443
    2202    Interest payable................          16             12
    2203    Debt............................         106            220
    2204    Liabilities for loan guarantees.       7,653          6,715
    2206    Pension and other actuarial
              liabilities...................                                    5,960          5,960
    2207    Unearned revenue and advances...         309            416           124            124
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       8,747          7,941         6,890          6,890
        NET POSITION:
    3100  Appropriated capital..............                        921         8,532          8,532
    3300  Cumulative results of operations..      -6,932         -5,888       -14,443        -14,777
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............      -6,932         -4,967        -5,911         -6,245
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,815          2,974           979            645
    -----------------------------------------------------------------------------------------------
        \1\ Preliminary pending final audit.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4072-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          29          60          58
    32.0  Land and structures...............         416         463         462
    33.0  Investments and loans.............         460       1,151       1,977
    42.0  Insurance claims and indemnities..          24          53          53
    43.0  Interest and dividends............          25          22          22
    44.0  Repayments to financing account...         273         273          16
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,227       2,022       2,588
    ---------------------------------------------------------------------------

         Housing for the Elderly or Handicapped Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.01   Housing for the elderly or
              handicapped loans.............                       4
    00.02   Maintenance security and
              collateral....................           1           1           1
                                               ---------   ---------  ----------
    00.91     Subtotal, capital investment..           1           5           1
    01.01 Operating expenses: Interest on
            borrowings......................         345         283         230
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         346         288         231
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         900         116
    22.00 New budget authority (gross)......         808         288         288
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.40 Capital transfer to general fund..        -272        -116         -57
    22.60 Portion applied to repay debt.....        -975
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         462         288         231
    23.95 Total new obligations.............        -346        -288        -231
    24.40 Unobligated balance carried
            forward, end of year............         116
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.05   Appropriation (indefinite)......                      87          87
    69.00 Offsetting collections (cash).....         808         751         751
    69.47 Portion applied to repay debt.....                    -550        -550
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         808         201         201
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         808         288         288
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         214         178         149
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         214         178         149
    73.10 Total new obligations.............         346         288         231
    73.20 Total outlays (gross).............        -380        -317        -317
    73.45 Recoveries of prior year
            obligations.....................          -1
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         178         149          63
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         178         149          63
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         380         288         288
    86.98 Outlays from mandatory balances...                      29          29
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         380         317         317
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -808        -751        -751
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                    -463        -463
    90.00 Outlays...........................        -428        -434        -434
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       8,043       7,923       7,777
    1231  Disbursements: Direct loan
            disbursements...................           6           5           5
    1251  Repayments: Repayments and
            prepayments.....................        -122        -151        -187
    1264  Write-offs for default: Other
            adjustments, net................          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       7,923       7,777       7,595
    ---------------------------------------------------------------------------
        Note.--Amounts for direct loan obligations reflect reservations of
    section 202 funds. Loan obligations shown under the program and
    financing schedule reflect loans that have reached the initial closing
    stage of processing.

        The Housing for the Elderly or Handicapped Fund was established
    pursuant to section 202 of the Housing Act of 1959, as amended. The fund
    provided direct loans to nonprofit organizations building and managing
    housing projects for lower income persons who are elderly or disabled.

        Projects included an assured range of necessary services for the
    occupants of such projects. In addition, the section 8 lower income
    housing assistance payments program has been used in conjunction with
    the section 202 program. Applications under the two programs have been
    processed simultaneously.

        The data included in these schedules represent direct loan
    activities funded under the Housing for the Elderly or Handicapped Loan
    Fund. Further, activities in support of the needs of the elderly and
    disabled have been carried out under a grant program funded in the 1991
    Appropriations Act (P.L. 101-507) and authorized in the National
    Affordable Housing Act (P.L. 101-625).

        After April 1, 1992, all projects for which there were
    administrative reservations converted to the capital advance assistance
    program.

        The program and financing schedule for this account summarizes the
    Federal government's obligations for this loan program.

    [[Page 519]]

        Financing.--Repayments and interest income from loans continue to be
    available to pay for commitments of the fund.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4115-0-3-371    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         685            674           600            564
    0102  Expense...........................        -403           -345          -284           -230
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         282            329           316            334
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4115-0-3-371    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................       1,114            294            33            117
          Non-Federal assets:

    1206    Receivables, net................          84             84            84             84
    1207    Advances and prepayments........           8
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       8,044          7,922         7,778          7,595
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -20            -23           -23            -22
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       8,024          7,899         7,755          7,573
    1606    Acquired Real Property..........           3              8             8              8
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       8,027          7,907         7,763          7,581
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       9,233          8,285         7,880          7,782
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         203            171           141            114
    2103    Debt............................       4,628          3,653         3,103          2,778
    2104    Resources payable to Treasury...       4,395          4,451         4,651          4,985
    2207  Non-Federal liabilities: Other....           6             10            10             10
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       9,232          8,285         7,905          7,887
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       9,232          8,285         7,905          7,887
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4115-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    32.0  Land and structures...............           1           1           1
    33.0  Investments and loans.............                       4
    43.0  Interest and dividends............         345         283         230
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         346         288         231
    ---------------------------------------------------------------------------

                Nonprofit Sponsor Assistance Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4042-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Unobligated balances rescinded:
          Budgetary resources available for
            obligation:

    21.40   Unobligated balance carried
              forward, start of year........           6
    22.00   New budget authority (gross)....          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.36   Unobligated balance rescinded...          -6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          -6
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4042-0-3-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           1           1           1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           1           1           1
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, all cash flows to and from the Government
    resulting from direct loans obligated prior to 1992. This account is
    shown on a cash basis.

        The Nonprofit Sponsor Assistance fund provided interest-free loans
    to nonprofit organizations to plan housing projects to be financed under
    the section 202 housing for the elderly or disabled program.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4042-0-3-604    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           6
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............           1              1             1
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -1             -1            -1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           6
        NET POSITION:
    3100  Appropriated capital..............           6
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............           6
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           6
    -----------------------------------------------------------------------------------------------

                      Manufactured Housing Fees Trust Fund

        For expenses authorized by section 620 of the National Manufactured
    Housing Construction and Safety Standards Act of 1974, as amended,
    $17,254,000 from amounts in the Manufactured Housing Fees Trust Fund, to
    remain available until expended: Provided, That all balances of fees
    collected under sections 620 and 623 of the National Manufactured
    Housing Construction and Safety Standards Act of 1974, as such sections
    existed on December 26, 2000, shall be transferred to and merged with
    the amounts in the Trust Fund.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-8119-0-7-376      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.00 Manufactured home inspection and
            monitoring......................                                  17
        Appropriations:
    05.00 Manufactured home inspection and
            monitoring......................                                 -17
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-8119-0-7-376      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Transfer to salaries and expenses.                                   2
    00.02 Other program costs...............                                  15
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................                                  17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  17
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                  17
    23.95 Total new obligations.............                                 -17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.26   Appropriation (trust fund,
              definite).....................                                  17
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                                  17
    73.20 Total outlays (gross).............                                 -14

    [[Page 520]]

          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.                                   3
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year                                   3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  17
    90.00 Outlays...........................                                  14
    ---------------------------------------------------------------------------

        The National Manufactured Housing Construction and Safety Standards
    Act of 1974, as amended by the Manufactured Housing Improvement Act of
    2000, authorizes development and enforcement of appropriate standards
    for the construction, design, and performance of manufactured homes to
    assure their quality, durability, affordability, and safety. All
    manufactured homes produced since the standards took effect on June 15,
    1976 must comply with Federal construction and safety standards. The
    States are actively encouraged to participate in the program under
    compliance plans approved by HUD. New program requirements mandated by
    the Manufactured Housing Improvement Act of 2000 include procurement of
    an Administering Organization, formation of a Consensus Committee to
    recommend revisions to and interpretations of the manufactured housing
    standards, development and implementation of standards for installation
    of manufactured housing, and development and implementation of a dispute
    resolution program.

        Fees are charged to the manufacturers for each manufactured home
    transportable section produced and will be used to fund the costs of all
    authorized activities necessary for the consensus committee, HUD, and
    its agents to carry out all aspects of the manufactured housing
    legislation. Fees are deposited in a trust fund administered by the
    Department, and a portion of the fee receipts are transferred to the
    salaries and expenses account to defray the direct administrative
    expenses of the program. In 2000, an estimated 431,845 transportable
    sections were produced, for a total of 254,000 manufactured homes.

        The Manufactured Housing Improvement Act of 2000 created a
    Manufactured Housing Fees Trust Fund and made spending subject to
    appropriations. This account provides spending for activities formerly
    funded under Manufactured Home Inspection and Monitoring.

        This account also presents activities formerly shown under the
    Interstate Land Sales account.

        The Interstate Land Sales Full Disclosure Act provides protection to
    the public with respect to purchases or leases of subdivision lots.
    Statements of record must be filed with the Secretary before
    subdivisions with 100 or more lots may be sold in interstate commerce,
    except when the subdivision is eligible for exemption.

        The Secretary is authorized to charge a fee, to be paid by the
    developer when filing a statement of record. The fee receipts are
    permanently appropriated and have helped finance a portion of the direct
    administrative expenses incurred in program operations.

        The estimated annual program activity level will continue at 1,020
    filings, approximately the same estimated level as in recent years.

                    GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

                                  Federal Funds

        The Housing and Urban Development Act of 1968 authorized the
    Government National Mortgage Association (Ginnie Mae) to guarantee the
    timely payment of principal and interest on privately issued securities
    that are backed by pools of FHA, Veterans Affairs (VA) and Rural Housing
    Service mortgages. The Ginnie Mae guarantee gives lenders access to the
    capital markets for funds to originate new loans. New FHA and VA loans
    are currently pooled into Ginnie Mae securities

        The Budget proposes legislation to allow FHA to insure a new
    product--hybrid adjustable-rate mortages. This will increase demand for
    FHA mortgages and thus increase the volume of Ginnie Mae guarantees of
    securities backed by FHA mortgages. In 2002, this proposal will increase
    GNMA commitments by approximately $4 billion, resulting in an additional
    $13 million in negative subsidy.

        Financing.--Ginnie Mae issuers are assessed commitment, guarantee
    and other fees to cover costs incurred by Ginnie Mae and to fund a
    reserve against possible future payments under the guarantee.

        Operating results.--Fee collections, interest, and other income are
    expected to exceed expenses by $775 million in 2001 and $796 million in
    2002.

    Credit accounts:

     Guarantees of Mortgage-Backed Securities Loan Guarantee Program Account

                          (including transfer of funds)

        New commitments to issue guarantees to carry out the purposes of
    section 306 of the National Housing Act, as amended (12 U.S.C. 1721(g)),
    shall not exceed $200,000,000,000, to remain available until September
    30, [2002] 2003.
        For administrative expenses necessary to carry out the guaranteed
    mortgage-backed securities program, $9,383,000 to be derived from the
    GNMA guarantees of mortgage-backed securities guaranteed loan receipt
    account, of which not to exceed $9,383,000 shall be transferred to the
    appropriation for ``Salaries and expenses''. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
    377.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         701       1,004       7,961
        Receipts:
    02.20 Negative subsidies................         312         356         354
    02.21 Subsidy balance transfer..........                   6,610         439
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         312       6,966         793
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...       1,013       7,970       8,754
        Appropriations:
    05.00 Guarantees of mortgage-backed
            securities loan guarantee
            program account.................          -9          -9          -9
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............       1,004       7,961       8,745
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Administrative expenses, salaries
            and expenses....................           9           9           9
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................           9           9           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9           9           9
    23.95 Total new obligations.............          -9          -9          -9
    ----------------------------------------------------------------------------

    [[Page 521]]

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund,
              definite).....................           9           9           9
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           9           9           9
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............           9           9           9
    73.20 Total outlays (gross).............          -9          -9          -9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9           9           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9           9           9
    90.00 Outlays...........................           9           9           9
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...                               6,610
    92.02 Total investments, end of year:
            Federal securities: Par value...                   6,610       7,049
    ---------------------------------------------------------------------------

    Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in
                                millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0186-0-1-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    2150  Loan guarantee levels.............     105,518      96,262     103,199
    2150  Standby commitment authority......      94,482     103,738      96,801
                                               ---------   ---------  ----------
    2159    Total loan guarantee levels.....     200,000     200,000     200,000
        Guaranteed loan subsidy (in percent):
    2320  Subsidy rate......................       -0.29       -0.36       -0.33
                                               ---------   ---------  ----------
    2329    Weighted average subsidy rate...       -0.29       -0.36       -0.33
        Guaranteed loan subsidy budget authority:
    2330  Subsidy budget authority..........        -312        -356        -354
                                               ---------   ---------  ----------
    2339    Total subsidy budget authority..        -312        -356        -354
        Guaranteed loan subsidy outlays:
    2340  Subsidy outlays...................        -312        -356        -354
                                               ---------   ---------  ----------
    2349    Total subsidy outlays...........        -312        -356        -354
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           9           9           9
    3590  Outlays from new authority........           9           9           9
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records the administrative expenses of this program. The administrative
    expenses are estimated on a cash basis.

           Guarantees of Mortgage-Backed Securities Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating expenses................          37          49          52
    00.02 Capital investment................           5          47          51
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          42          96         103
    08.01 Payment to receipt account for
            negative subsidy................         312         356         354
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         354         452         457
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         496         598         625
    22.00 New financing authority (gross)...         457         479         501
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         953       1,077       1,126
    23.95 Total new obligations.............        -354        -452        -457
    24.40 Unobligated balance carried
            forward, end of year............         598         625         668
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............         457         479         501
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          11          16          16
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          11          16          16
    73.10 Total new obligations.............         354         452         457
    73.20 Total financing disbursements
            (gross).........................        -349        -452        -457
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          16          16          17
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          16          16          17
    87.00 Total financing disbursements
            (gross).........................         349         452         457
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..         -45         -36         -38
              Non-Federal sources:
    88.40       Guarantee Fees..............        -370        -378        -386
    88.40       Commitment and other fees...         -32         -44         -34
    88.40       Multiclass fees.............         -10         -21         -23
    88.40       Repayment of advances.......                                 -20
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -457        -479        -501
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........        -107         -27         -44
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4240-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........     200,000     200,000     200,000
    2112  Uncommitted loan guarantee
            limitation......................     -94,482    -103,738     -96,801
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................     105,518      96,262     103,199
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........     569,312     602,741     620,259
    2231  Disbursements of new guaranteed
            loans...........................     105,518      96,262     103,199
    2251  Repayments and prepayments........     -72,089     -78,744     -91,619
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........     602,741     620,259     631,839
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..     602,741     620,259     631,839
    ---------------------------------------------------------------------------

        Operating Results.--Fee collections, interest, and other income are
    expected to exceed expenses by $91 million in 2000; $55 million in 2001
    and $67 million in 2002. These amounts will be retained against losses
    that may be incurred on guarantees.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4240-0-3-371    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         507            614           641            685
    1206  Non-Federal assets: Receivables,
            net.............................          30             31            32             33
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............                                       19             27
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................                                       19             27
    1803  Other Federal assets: Property,
            plant and equipment, net........                          5             8             12
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         537            650           700            757

    [[Page 522]]

        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................          40             47            49             50
    2207    Other...........................                         22            38             50
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          40             69            87            100
        NET POSITION:
    3300  Cumulative results of operations..         496            581           613            657
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         496            581           613            657
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         536            650           700            757
    -----------------------------------------------------------------------------------------------
        Note.--Ginnie Mae guarantees the timely payment of principal and
    interest installments on securities which are backed by FHA-insured,
    Rural Housing Service-insured, and VA-guaranteed mortgages. Such
    guarantees are excluded from the Government total of guaranteed
    obligations duplicating FHA, Rural Housing Service, and VA guarantees.

          Guarantees of Mortgage-Backed Securities Liquidating Account

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.80 Guarantees of mortgage-backed
            securities liquidating account,
            offsetting collections..........         456         414          58
        Appropriations:
    05.00 Guarantees of mortgage-backed
            securities liquidating account..        -456        -414         -58
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    00.02   Default expenses................           1           1
    00.03   Servicing expenses..............           2           2
    00.04   Other expenses..................                                   1
                                               ---------   ---------  ----------
    00.91     Total operating expenses......           3           3           1
          Capital investment:

    01.01   Advances of guaranty payments...          42          38           1
          Other:

    02.01   Transfer to Receipt Account.....                   6,610          56
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          45       6,651          58
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       5,827       6,237
    22.00 New budget authority (gross)......         456         414          58
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       6,283       6,651          58
    23.95 Total new obligations.............         -45      -6,651         -58
    24.40 Unobligated balance carried
            forward, end of year............       6,237
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         456         414          58
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year\1\.......................         -57         -79         -57
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         -57         -79         -57
    73.10 Total new obligations.............          45       6,651          58
    73.20 Total outlays (gross).............         -67      -6,630         -58
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         -79         -57
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         -79         -57
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          67         414          58
    86.98 Outlays from mandatory balances...                   6,216
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          67       6,630          58
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities        -370        -374         -56
              Non-Federal sources:
    88.40       Repayments of guaranteed
                  payments..................         -79         -36          -1
    88.40       Servicing income............          -5          -2
    88.40       Repayments on mortgages.....          -2          -2          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -456        -414         -58
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................        -389       6,216
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...       5,781       6,190
    92.02 Total investments, end of year:
            Federal securities: Par value...       6,190
    ---------------------------------------------------------------------------
        \1\ This line nets unpaid obligations and offsetting collections
    from new Federal sources.

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         360         109          65
    1232  Disbursements: Purchase of loans
            assets from the public..........          42          38           2
    1252  Repayments: Proceeds from loan
            asset sales to the public or
            discounted......................         -81         -37          -2
    1263  Write-offs for default: Direct
            loans...........................        -212         -45         -16
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         109          65          49
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         156         146         135
    2251  Repayments and prepayments........         -10         -11         -12
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         146         135         123
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         146         135         123
    ---------------------------------------------------------------------------

        Operating results.--Fee collections, interest, and other income are
    expected to exceed expenses by $370 million in 2000 and $373 million in
    2001. These amounts will be retained to cover future year expenses and
    as a reserve against losses that may be incurred on guarantees. In 2002,
    fee collections, interest, and other income are expected to equal
    expenses.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4238-0-3-371    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         329            370           377              1
    0102  Expense...........................          -3                           -3             -1
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         326            370           374
                                            ------------ --------------  ------------  -------------
    0199  Total comprehensive income........         326            370           374
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   86-4238-0-3-371    1999 actual    2000 actual     2001 est.      2002 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           3
            Investments in US securities:
    1102      Treasury securities, par......       5,778          6,171
    1106      Receivables, net..............          70             89            56
    1206  Non-Federal assets: Receivables,
            net.............................           1              3             3

    [[Page 523]]

          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         360            109            65             49
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -326           -105           -16             -5
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          34              4            49             44
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       5,886          6,267           108             44
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................          17             20             1
    2207    Other...........................         512            513           105             43
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         529            533           106             43
        NET POSITION:
    3300  Cumulative results of operations..       5,357          5,734             2              1
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............       5,357          5,734             2              1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       5,886          6,267           108             44
    -----------------------------------------------------------------------------------------------
        Note.--Ginnie Mae guarantees the timely payment of principal and
    interest installments on securities which are backed by FHA-insured,
    Rural Housing Service, and VA-guaranteed mortgages. Such guarantees are
    excluded from the Government total of guaranteed obligations duplicating
    FHA, Rural Housing Service, and VA guarantees.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4238-0-3-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           3           3           2
    33.0  Investments and loans.............          42          38
    92.0  Undistributed.....................                   6,610          56
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          45       6,651          58
    ---------------------------------------------------------------------------

                         POLICY DEVELOPMENT AND RESEARCH

                                  Federal Funds

    General and special funds:

                             Research and Technology

        For contracts, grants, and necessary expenses of programs of
    research and studies relating to housing and urban problems, not
    otherwise provided for, as authorized by title V of the Housing and
    Urban Development Act of 1970, as amended (12 U.S.C. 1701z-1 et seq.),
    including carrying out the functions of the Secretary under section
    1(a)(1)(i) of Reorganization Plan No. 2 of 1968, [$53,500,000]
    $43,404,000, to remain available until September 30, [2002: Provided,
    That of the amount provided under this heading, $10,000,000 shall be for
    the Partnership for Advancing Technology in Housing (PATH) Initiative:
    Provided further, That $3,000,000 shall be for program evaluation to
    support strategic planning, performance measurement, and their
    coordination with the Department's budget process: Provided further,
    That $500,000, to remain available until expended, shall be for a
    commission as established under section 525 of Preserving Affordable
    Housing for Senior Citizens and Families into the 21st Century Act]
    2003. (Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001, as
    enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0108-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Housing Research..................          35          42          43
    00.02 PATH..............................          10          10
    00.03 International Activities..........          10
    00.04 Commission on Affordable Housing..                       1
    00.05 Strategic Planning Performance
            Measurement.....................                       3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          55          56          43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          12           2
    22.00 New budget authority (gross)......          45          54          43
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          57          56          43
    23.95 Total new obligations.............         -55         -56         -43
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          45          54          43
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          52          63          61
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          52          63          61
    73.10 Total new obligations.............          55          56          43
    73.20 Total outlays (gross).............         -43         -58         -60
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          63          61          44
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          63          61          44
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9          22          17
    86.93 Outlays from discretionary
            balances........................          34          36          43
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          43          58          60
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          45          54          43
    90.00 Outlays...........................          43          58          60
    ---------------------------------------------------------------------------

        The Housing and Urban Development Act of 1970 directs the Secretary
    to undertake programs of research, studies, testing, and demonstrations
    related to the HUD mission. These functions are carried out internally
    and through con- tracts with industry, nonprofit research organizations,
    and educational institutions, and through agreements with State and
    local governments and other Federal agencies.

        In 2002, the research program will focus on research and evaluation
    of HUD's housing, community development, and economic development
    programs. National Housing Surveys will continue in 2002. Research and
    evaluation activities will also support the Department in carrying out
    its responsibilities under the Government Performance and Results Act.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0108-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          39          50          38
    41.0  Grants, subsidies, and
            contributions...................          16           6           5
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          55          56          43
    ---------------------------------------------------------------------------

                       FAIR HOUSING AND EQUAL OPPORTUNITY

                                  Federal Funds

    General and special funds:

                             Fair Housing Activities

        For contracts, grants, and other assistance, not otherwise provided
    for, as authorized by title VIII of the Civil Rights Act of 1968, as
    amended by the Fair Housing Amendments Act of 1988, and section 561 of
    the Housing and Community Development Act of 1987, as amended,
    [$46,000,000] $45,899,000, to remain available until September 30,
    [2002] 2003, of which [$24,000,000] $22,949,000 shall be to carry out
    activities pursuant to such section 561: Provided, That no funds made
    available under this heading shall be used to lobby the executive or
    legislative branches of the Federal Government in connection with a
    specific contract, grant or loan. (Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2001, as enacted by section 1(a)(1) of P.L. 106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0144-0-1-751      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Fair housing assistance...........          22          28          23
    00.02 Fair housing initiatives..........          16          48          23
                                               ---------   ---------  ----------

    [[Page 524]]

    10.00   Total new obligations (object
              class 41.0)...................          38          76          46
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          26          30
    22.00 New budget authority (gross)......          44          46          46
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          70          76          46
    23.95 Total new obligations.............         -38         -76         -46
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    24.40 Unobligated balance carried
            forward, end of year............          30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          44          46          46
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          34          39          78
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          34          39          78
    73.10 Total new obligations.............          38          76          46
    73.20 Total outlays (gross).............         -33         -37         -37
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          39          78          87
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          39          78          87
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1
    86.93 Outlays from discretionary
            balances........................          32          37          37
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          37          37
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          44          46          46
    90.00 Outlays...........................          33          37          37
    ---------------------------------------------------------------------------

        The Budget proposes an appropriation of $46 million in 2002 to fund
    fair housing activities that support efforts to end housing
    discrimination. Of the amount requested, $23 million is for the Fair
    Housing Assistance Program and $23 million is for the Fair Housing
    Initiatives Program. This includes $7.5 million used in previous budgets
    for the National Housing Discrimination Audit now redirected to increase
    fair housing program activities by 20 percent over the 2001 level.

        The Fair Housing Assistance Program (FHAP), authorized by title VIII
    of the Civil Rights Act of 1968 as amended, provides funding to State
    and local agencies to assure prompt and effective processing of Title
    VIII (Civil Rights Act of 1968) complaints.

        The funding requested for FHAP will support fair housing enforcement
    by increasing funding to support additional State and local fair housing
    organizations to meet the needs of currently underserved populations. It
    is estimated that the number of new State and local agencies with laws
    equivalent to the Fair Housing Act will increase to 95 in 2002 from 89
    in 2001.

        The Fair Housing Initiatives Program (FHIP), authorized by the
    Housing and Community Development Act of 1987, as amended by the Housing
    and Community Development Act of 1992, provides support to public and
    private organizations for the purpose of eliminating or preventing
    discrimination in housing and for enhancing fair housing opportunities.
    FHIP provides funding for projects that inform and educate the public,
    including housing providers, on the rights and obligations of the Fair
    Housing Act and about substantially equivalent state and local fair
    housing laws.

                 OFFICE OF LEAD HAZARD CONTROL AND HEALTHY HOMES

                                  Federal Funds

    General and Special Funds:

                              Lead Hazard Reduction

                          (including transfer of funds)

        For the Lead Hazard Reduction Program, as authorized by sections
    1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of
    1992, [$100,000,000] $109,758,000 to remain available until expended, of
    which [$1,000,000 shall be for CLEARCorps and] $10,000,000 shall be for
    the Healthy Homes Initiative, pursuant to sections 501 and 502 of the
    Housing and Urban Development Act of 1970 that shall include research,
    studies, testing, and demonstration efforts, including education and
    outreach concerning lead-based paint poisoning and other housing-related
    [environmental] childhood diseases and hazards: Provided, That for
    purposes of environmental review, a grant under the Healthy Homes
    Initiative, under this heading or under prior appropriations Acts, shall
    be treated as assistance for a special project that is subject to
    section 305(c) of the Multifamily Housing Property Disposition Reform
    Act of 1994, and shall be subject to the regulations issued by the
    Secretary to implement such section. (Departments of Veterans Affairs
    and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
    377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0174-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Lead abatement....................          71         174         110
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          71         174         110
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          62          72
    22.00 New budget authority (gross)......          80         100         110
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.22 Unobligated balance transferred
            from other accounts.............                       2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         143         174         110
    23.95 Total new obligations.............         -71        -174        -110
    24.40 Unobligated balance carried
            forward, end of year............          72
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          80         100         110
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          16         196         275
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          16         196         275
    73.10 Total new obligations.............          71         174         110
    73.20 Total outlays (gross).............         -95         -95         -95
    73.32 Obligated balance transferred from
            other accounts..................         204
    73.45 Recoveries of prior year
            obligations.....................          -1
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         196         275         290
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         196         275         290
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2           2
    86.93 Outlays from discretionary
            balances........................          93          93          93
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          95          95          95
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          80         100         110
    90.00 Outlays...........................          95          95          95
    ---------------------------------------------------------------------------

        Title X of the Housing and Community Development Act of 1992 (Public
    Law 102-550), known as the Residential Lead-Based Paint Hazard Reduction
    Act, authorized the Secretary to establish the Lead-Based Paint Hazard
    Control Grant Program. The primary purpose of the program is to reduce
    the

    [[Page 525]]

    exposure of young children to lead-based paint hazards in their homes.

        The program is a major part of a 10-year strategy to eliminate lead
    poisoning in children. The 2002 Budget includes a $10 million increase
    to $100 million for HUD's Lead Hazard Control Program and $10 million
    for the Healthy Homes Initiative.

        The Lead Hazard Control Grant Program provides grants of $1 to $3
    million to State and local governments and Indian tribes for control of
    lead-based paint hazards in privately owned, low-income owner-occupied
    and rental housing. The grants are also designed to stimulate the
    development of a trained and certified hazard evaluation and control
    industry by requiring all contractors to be certified and all workers to
    be trained through a State- or EPA-accredited program. In awarding
    grants, HUD promotes the use of new, low cost approaches to hazard
    control that can be replicated across the nation.

        The Healthy Homes Initiative will enable the Department to control
    additional childhood diseases and injuires that are caused by housing
    related factors. The initative will allow for a demonstration that
    evaluates the methods of controlling two or more housing related
    diseases through a single intervention. A public education/outreach
    effort, to enable the public to act effectively to protect their
    children, will also be conducted.

        The Office of Healthy Homes and Lead Hazard Control will continue
    its Technical Assistance program, which will include public education;
    technical assistance for State and local agencies, private property
    owners, HUD programs and field offices and professional organizations;
    quality control to ensure that the evaluation and control of lead-based
    paint hazards is done properly in HUD-assisted housing; development of
    standards, technical guidance, regulations and improved testing; and
    hazard control methods.

        Prior to 1997, funding for the lead hazard control grant program was
    provided under the Annual Contributions for Assisted Housing Account. In
    1997 and 1998, the program was funded as a set-aside under the Community
    Development Block Grant (CDBG) account. Starting in 1999 the program was
    funded as a separate, stand-alone program.

                          MANAGEMENT AND ADMINISTRATION

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                          (including transfer of funds)

        For necessary administrative and non-administrative expenses of the
    Department of Housing and Urban Development, not otherwise provided for,
    including not to exceed $7,000 for official reception and representation
    expenses, [$1,072,000,000] $1,097,257,000, of which [$518,000,000]
    $530,457,000 shall be provided from the various funds of the Federal
    Housing Administration, $9,383,000 shall be provided from funds of the
    Government National Mortgage Association, $1,000,000 shall be provided
    from the ``Community development fund'' account, $150,000 shall be
    provided by transfer from the ``Title VI Indian federal guarantees
    program'' account, and $200,000 shall be provided by transfer from the
    ``Indian housing loan guarantee fund program'' account[: Provided, That
    the Secretary is prohibited from using any funds under this heading or
    any other heading in this Act from employing more than 77 schedule C and
    20 noncareer Senior Executive Service employees: Provided further, That
    not more than $758,000,000 shall be made available to the personal
    services object class: Provided further, That no less than $100,000,000
    shall be transferred to the Working Capital Fund for the development and
    maintenance of Information Technology Systems: Provided further, That
    the Secretary shall fill 7 out of 10 vacancies at the GS-14 and GS-15
    levels until the total number of GS-14 and GS-15 positions in the
    Department has been reduced from the number of GS-14 and GS-15 positions
    on the date of enactment of this provision by two and one-half percent:
    Provided further, That the Secretary shall submit a staffing plan for
    the Department by May 15, 2001: Provided further, That the Secretary is
    prohibited from using funds under this heading or any other heading in
    this Act to employ more than 14 employees in the Office of Public
    Affairs or in any position in the Department where the employee reports
    to an employee of the Office of Public Affairs]. (Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L.
    106-377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Housing, mortgage credit,
              regulatory and energy
              conservation..................         185         211         216
    00.02   Community planning and
              development programs..........          31          36          37
    00.03   Equal opportunity and research
              programs......................          34          39          40
    00.04   Departmental management, legal
              and audit services............          30          34          35
    00.05   Field direction and
              administration................         194         222         228
    09.01 Reimbursable program..............         535         528         541
                                               ---------   ---------  ----------
    09.99   Total reimbursable program......         535         528         541
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,009       1,070       1,097
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,012       1,070       1,097
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,012       1,070       1,097
    23.95 Total new obligations.............      -1,009      -1,070      -1,097
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         477         543         556
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         477         542         556
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         535         528         541
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         535         528         541
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,012       1,070       1,097
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         163         194         194
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................         163         194         194
    73.10 Total new obligations.............       1,009       1,070       1,097
    73.20 Total outlays (gross).............        -968      -1,070      -1,092
    73.31 Obligated balance transferred to
            other accounts..................                      -2
    73.40 Adjustments in expired accounts
            (net)...........................         -10
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.         194         194         199
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         194         194         199
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         903         945         969
    86.93 Outlays from discretionary
            balances........................          65         125         125
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         968       1,070       1,092
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -535        -528        -541
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         477         542         556
    90.00 Outlays...........................         433         542         551
    ---------------------------------------------------------------------------

        This appropriation finances all salaries and related costs
    associated with administering the programs of the Department of Housing
    and Urban Development, including: housing and mortgage credit programs;
    community planning and development programs; equal opportunity,
    research, regulatory

    [[Page 526]]

    and insurance programs; departmental management, and legal services;
    and, field direction and administration.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         267         284         296
    11.3      Other than full-time permanent           2           2           2
    11.5      Other personnel compensation..           5           5           5
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         274         291         303
    12.1    Civilian personnel benefits.....          62          66          68
    21.0    Travel and transportation of
              persons.......................           8          12          12
    23.1    Rental payments to GSA..........          43          53          53
    23.3    Communications, utilities, and
              miscellaneous charges.........          14          16          16
    24.0    Printing and reproduction.......           3           2           2
    25.1    Advisory and assistance services          42          70          70
    25.2    Other services..................           3           3           3
    25.3    Purchases of goods and services
              from Government accounts......          14          21          21
    25.4    Operation and maintenance of
              facilities....................           4           5           5
    26.0    Supplies and materials..........           3           2           2
    31.0    Equipment.......................           4           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..         474         542         556
    99.0  Reimbursable obligations..........         535         528         541
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,009       1,070       1,097
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0143-0-1-999      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       4,271       4,333       4,333
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       4,699       4,767       4,767
    ---------------------------------------------------------------------------

                           Office of Inspector General

        For necessary expenses of the Office of Inspector General in
    carrying out the Inspector General Act of 1978, as amended,
    [$85,000,000] $93,898,000, of which $22,343,000 shall be provided from
    the various funds of the Federal Housing Administration and $10,000,000
    shall be provided from the amount earmarked for Operation Safe Home in
    the appropriation for [``Drug elimination grants for low-income
    housing''] the ``Public Housing Operating Fund'': Provided, That the
    Inspector General shall have independent authority over all personnel
    issues within the Office of Inspector General. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
    377.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          58          59          62
    09.01 Reimbursable program..............          33          33          32
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          91          92          94
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10           6
    22.00 New budget authority (gross)......          84          86          94
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          97          92          94
    23.95 Total new obligations.............         -91         -92         -94
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          57          53          62
    40.36   Unobligated balance rescinded...          -6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          51          53          62
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          33          33          32
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          33          33          32
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          84          86          94
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................          52          27          28
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          52          27          28
    73.10 Total new obligations.............          91          92          94
    73.20 Total outlays (gross).............        -112         -90         -92
    73.45 Recoveries of prior year
            obligations.....................          -3
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          27          28          30
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year          27          28          30
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          72          74          80
    86.93 Outlays from discretionary
            balances........................          41          16          12
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         112          90          92
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -33         -33         -32
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          51          53          62
    90.00 Outlays...........................          79          57          60
    ---------------------------------------------------------------------------

        This appropriation provides agency wide audit and investigative
    functions to identify and correct management and administrative
    deficiencies that create conditions for existing or potential instances
    of fraud, waste and mismanagement. The audit function provides internal
    audit and contract audit. Internal audits review and evaluate all facets
    of agency operations. The investigative function provides for the
    detection and investigation of improper and illegal activities involving
    programs, personnel, and operations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          31          31          36
    11.5      Other personnel compensation..           1           1           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          32          32          38
    12.1    Civilian personnel benefits.....           8           8           8
    21.0    Travel and transportation of
              persons.......................           4           4           4
    23.1    Rental payments to GSA..........           5           4           4
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.1    Advisory and assistance services           4           5           3
    25.3    Purchases of goods and services
              from Government accounts......           2           3           2
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          58          59          62
    99.0  Reimbursable obligations..........          33          33          32
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          91          92          94
    ---------------------------------------------------------------------------

    [[Page 527]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-0189-0-1-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         447         451         446
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         251         254         234
    ---------------------------------------------------------------------------

                              Consolidated Fee Fund

        Of the balances remaining from fees and charges under section 7(j)
    of the Department of Housing and Urban Development Act, $6,700,000 is
    rescinded.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5486-0-2-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.00 Miscellaneous fees and charges....          16
        Appropriations:
    05.00 Consolidated fee fund.............         -16
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5486-0-2-604      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................                       1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      16          15
    22.00 New budget authority (gross)......          16                      -7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16          16           8
    23.95 Total new obligations.............                      -1
    24.40 Unobligated balance carried
            forward, end of year............          16          15           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescinded...                                  -7
          Mandatory:

    60.25   Appropriation (special fund,
              indefinite)...................          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          16                      -7
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
    73.10 Total new obligations.............                       1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...                       1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16                      -7
    90.00 Outlays...........................                       1
    ---------------------------------------------------------------------------

        Section 7(j) of the Department of Housing and Urban Development Act
    establishes fees and charges from selected programs to offset the costs
    of audits, inspections and other related expenses that may be incurred
    by the Department in monitoring these programs. These fees were mis-
    classified for many years as deposit funds, which is a holding fund for
    refunds to private entities. Because these are Federal funds, they are
    now re-classified as such and displayed on budget. In 2002, a rescission
    is requested, which offsets most of the increase in funding for the
    Inspector General account.

                 Office of Federal Housing Enterprise Oversight

                              Salaries and Expenses

                          (including transfer of funds)

        For carrying out the Federal Housing Enterprise Financial Safety and
    Soundness Act of 1992, including not to exceed [$500] $1,000 for
    official reception and representation expenses, [$22,000,000]
    $27,000,000, to remain available until expended, to be derived from the
    Federal Housing Enterprise Oversight Fund: Provided, That not to exceed
    such amount shall be available from the General Fund of the Treasury to
    the extent necessary to incur obligations and make expenditures pending
    the receipt of collections to the Fund: Provided further, That the
    General Fund amount shall be reduced as collections are received during
    the fiscal year so as to result in a final appropriation from the
    General Fund estimated at not more than $0. (Departments of Veterans
    Affairs and Housing and Urban Development, and Independent Agencies
    Appropriations Act, 2001, as enacted by section 1(a)(1) of P.L. 106-
    377.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.60 Office of federal housing
            enterprise oversight............          19          22          27
        Appropriations:
    05.00 Office of federal housing
            enterprise oversight............         -19         -22         -27
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          20          23          27
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          20          23          27
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          19          22          27
    22.10 Resources available from
            recoveries of prior year
            obligations.....................                       1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          19          23          27
    23.95 Total new obligations.............         -20         -23         -27
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund,
              definite).....................          19          22          27
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          19          22          27
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................           4           6           6
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................           4           6           6
    73.10 Total new obligations.............          20          23          27
    73.20 Total outlays (gross).............         -18         -22         -26
    73.45 Recoveries of prior year
            obligations.....................                      -1
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.           6           6           7
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year           6           6           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          14          18          22
    86.93 Outlays from discretionary
            balances........................           4           4           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          18          22          26
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          19          22          27
    90.00 Outlays...........................          18          22          26
    ---------------------------------------------------------------------------

        This appropriation funds the Office of Federal Housing Enterprise
    Oversight (the Office), which was established in 1992 to regulate the
    financial safety and soundness of two housing Government Sponsored
    Enterprises (GSEs)--Fannie Mae and Freddie Mac. The Office was
    authorized in the Federal Housing Enterprise Safety and Soundness Act of
    1992, which also

    [[Page 528]]

    instituted a risk-based capital standard for the GSEs, and gave the
    regulator enhanced authority to enforce those standards. The office is
    also required by statute to conduct on-site annual examinations at the
    GSEs to determine the condition of each enterprise for the purpose of
    ensuring their financial safety and soundness.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation:
              Personnel Compensation........           9          13          13
    12.1    Civilian personnel benefits.....           2           3           3
    23.2    Rental payments to others.......           2           2           3
    25.2    Other services..................           5           3           3
    31.0    Equipment.......................           1           1           4
                                               ---------   ---------  ----------
    99.0      Subtotal, direct obligations..          19          22          26
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          20          23          27
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-5272-0-2-371      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          87         111         116
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program..............         275         352         362
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         275         352         362
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          32          25
    22.00 New budget authority (gross)......         265         327         362
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         300         352         362
    23.95 Total new obligations.............        -275        -352        -362
    24.40 Unobligated balance carried
            forward, end of year............          25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         255         314         362
    69.10   Change in uncollected customer
              payments from Federal sources.          10          13
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         265         327         362
    ----------------------------------------------------------------------------

        Change in unpaid obligations:
          Unpaid obligations, start of year:

    72.40   Unpaid obligations, start of
              year..........................         109          81         108
    72.95   Uncollected customer payments
              from Federal sources, start of
              year..........................         -88         -98        -111
                                               ---------   ---------  ----------
    72.99     Obligated balance, start of
                year........................          21         -17          -3
    73.10 Total new obligations.............         275         352         362
    73.20 Total outlays (gross).............        -299        -327        -362
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.00 Change in uncollected customer
            payments from Federal sources...         -10         -13
          Unpaid obligations, end of year:

    74.40   Unpaid obligations, end of year.          81         108         108
    74.95   Uncollected customer payments
              from Federal sources, end of
              year..........................         -98        -111        -111
                                               ---------   ---------  ----------
    74.99     Obligated balance, end of year         -17          -3          -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         299         327         362
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -255        -314        -362
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources.         -10         -13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          44          13
    ---------------------------------------------------------------------------

        The Working Capital Fund, authorized by the Department of Housing
    and Urban Development Act of 1965, finances information technology and
    office automation initiatives which can be performed more efficiently on
    a centralized basis. The fund is financed from fees charged for services
    performed.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          25          28          35
    12.1  Civilian personnel benefits.......           5           5           6
    21.0  Travel and transportation of
            persons.........................           1           1           1
    22.0  Transportation of things..........                                   1
    23.3  Communications, utilities, and
            miscellaneous charges...........          43          45          46
    25.1  Advisory and assistance services..         191         240         252
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           9          32          20
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         275         352         362
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 86-4586-0-4-451      2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         349         365         436
    ---------------------------------------------------------------------------

                            Administrative Provisions

        Sec. 201. Fifty percent of the amounts of budget authority, or in
    lieu thereof 50 percent of the cash amounts associated with such budget
    authority, that are recaptured from projects described in section
    1012(a) of the [Stewart B.] McKinney-Vento Homeless Assistance
    Amendments Act of 1988 (Public Law 100-628; 102 Stat. 3224, 3268) shall
    be rescinded, or in the case of cash, shall be remitted to the Treasury,
    and such amounts of budget authority or cash recaptured and not
    rescinded or remitted to the Treasury shall be used by State housing
    finance agencies or local governments or local housing agencies with
    projects approved by the Secretary of Housing and Urban Development for
    which settlement occurred after January 1, 1992, in accordance with such
    section. Notwithstanding the previous sentence, the Secretary may award
    up to 15 percent of the budget authority or cash recaptured and not
    rescinded or remitted to the Treasury to provide project owners with
    incentives to refinance their project at a lower interest rate.

                         [fair housing and free speech]

        [Sec. 202. None of the amounts made available under this Act may be
    used during fiscal year 2001 to investigate or prosecute under the Fair
    Housing Act any otherwise lawful activity engaged in by one or more
    persons, including the filing or maintaining of a non-frivolous legal
    action, that is engaged in solely for the purpose of achieving or
    preventing action by a Government official or entity, or a court of
    competent jurisdiction.]

               housing opportunities for persons with aids grants

        Sec. [203] 202. (a) Eligibility.--[Notwithstanding] Beginning in
    fiscal year 2002 and thereafter, and notwithstanding section
    854(c)(1)(A) of the AIDS Housing Opportunity Act (42 U.S.C.

    [[Page 529]]

    12903(c)(1)(A)), from any amounts made available under this title for a
    fiscal year [2001] that are allocated under such section, the Secretary
    of Housing and Urban Development shall allocate and make a grant, in the
    amount determined under subsection (b), for any State that--
            (1) received an allocation in a prior fiscal year under clause
        (ii) of such section; and
            (2) is not otherwise eligible for an allocation for such fiscal
        year [2001] under such clause (ii) because the areas in the State
        outside of the metropolitan statistical areas that qualify under
        clause (i) in such fiscal year [2001] do not have the number of
        cases of acquired immunodeficiency syndrome (AIDS) required under
        such clause.
        (b) Amount.--The amount of the allocation and grant for any State
    described in subsection (a) shall be an amount based on the cumulative
    number of AIDS cases in the areas of that State that are outside of
    metropolitan statistical areas that qualify under clause (i) of such
    section 854(c)(1)(A) [in fiscal year 2001], in proportion to AIDS cases
    among cities and States that qualify under clauses (i) and (ii) of such
    section and States deemed eligible under subsection (a).
        [(c) Environmental Review.--Section 856 of the Act is amended by
    adding the following new subsection at the end:
        ``(h) Environmental Review.--For purposes of environmental review, a
    grant under this subtitle shall be treated as assistance for a special
    project that is subject to section 305(c) of the Multifamily Housing
    Property Disposition Reform Act of 1994, and shall be subject to the
    regulations issued by the Secretary to implement such section.''.]
        Sec. 203. Section 225 of the Department of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 2000, P.L. 106-74, is amended by inserting ``and fiscal year 2002''
    after ``fiscal year 2001''.

                        [enhanced disposition authority]

        [Sec. 204. Section 204 of the Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies Appropriations
    Act, 1997, is amended by striking ``and 2000'' and inserting ``2000, and
    thereafter''.]

                [Maximum Payment Standard for Enhanced Vouchers]

        [Sec. 205. Section 8(t)(1)(B) of the United States Housing Act of
    1937 is amended by inserting ``and any other reasonable limit prescribed
    by the Secretary'' immediately before the semicolon.]

                      [Due Process for Homeless Assistance]

        [Sec. 206. None of the funds appropriated under this or any other
    Act may be used by the Secretary of Housing and Urban Development to
    prohibit or debar or in any way diminish the responsibilities of any
    entity (and the individuals comprising that entity) that is responsible
    for convening and managing a continuum of care process (convenor) in a
    community for purposes of the Stewart B. McKinney Homeless Assistance
    Act from participating in that capacity unless the Secretary has
    published in the Federal Register a description of all circumstances
    that would be grounds for prohibiting or debarring a convenor from
    administering a continuum of care process and the procedures for a
    prohibition or debarment: Provided, That these procedures shall include
    a requirement that a convenor shall be provided with timely notice of a
    proposed prohibition or debarment, an identification of the
    circumstances that could result in the prohibition or debarment, an
    opportunity to respond to or remedy these circumstances, and the right
    for judicial review of any decision of the Secretary that results in a
    prohibition or debarment.]

                           [HUD Reform Act Compliance]

        [Sec. 207. Except as explicitly provided in legislation, any grant
    or assistance made pursuant to Title II of this Act shall be made in
    accordance with section 102 of the Department of Housing and Urban
    Development Reform Act of 1989 on a competitive basis.]

    [Expansion of Environmental Assumption Authority for Homeless Assistance
                                    Programs]

        [Sec. 208. Section 443 of the Stewart B. McKinney Homeless
    Assistance Act is amended to read as follows:

    ``SEC. 443. ENVIRONMENTAL REVIEW.

        ``For purposes of environmental review, assistance and projects
    under this title shall be treated as assistance for special projects
    that are subject to section 305(c) of the Multifamily Housing Property
    Disposition Reform Act of 1994, and shall be subject to the regulations
    issued by the Secretary to implement such section.''.]

       [Technical Amendments and Corrections to the National Housing Act]

        [Sec. 209. (a) Section 203 Subsection Designations.--Section 203 of
    the National Housing Act is amended by--
            (1) redesignating subsection (t) as subsection (u);
            (2) redesignating subsection (s), as added by section 329 of the
        Cranston-Gonzalez National Affordable Housing Act, as subsection
        (t); and
            (3) redesignating subsection (v), as added by section 504 of the
        Housing and Community Development Act of 1992, as subsection (w).
        (b) Mortgage Auctions.--The first sentence of section
    221(g)(4)(C)(viii) of the National Housing Act is amended by inserting
    after ``December 31, 2002'' the following: ``, except that this
    subparagraph shall continue to apply if the Secretary receives a
    mortgagee's written notice of intent to assign its mortgage to the
    Secretary on or before such date''.
        (c) Mortgagee Review Board.--Section 202(c)(2) of the National
    Housing Act is amended--
            (1) in subparagraph (E), by striking ``and'';
            (2) in subparagraph (F), by striking ``or their designees.'' and
        inserting ``and'';
            (3) by adding the following new subparagraph at the end:
                    ``(G) the Director of the Enforcement Center; or their
                designees.''.]

                      [indian housing block grant program]

        [Sec. 210. Section 201(b) of the Native American Housing Assistance
    and Self-Determination Act of 1996 is amended--
            (1) by redesignating paragraphs (4) and (5) as paragraphs (5)
        and (6) respectively; and
            (2) by inserting after paragraph (3) the following new
        paragraph:
            ``(4) Law enforcement officers.--Notwithstanding paragraph (1),
        a recipient may provide housing or housing assistance provided
        through affordable housing activities assisted with grant amounts
        under this Act to a law enforcement officer on the reservation or
        other Indian area, who is employed full-time by a Federal, state,
        county or tribal government, and in implementing such full-time
        employment is sworn to uphold, and make arrests for violations of
        Federal, state, county or tribal law, if the recipient determines
        that the presence of the law enforcement officer on the Indian
        reservation or other Indian area may deter crime.''.]

    [prohibition on the use of federal assistance in support of the sale of
                                tobacco products]

        [Sec. 211. None of the funds appropriated in this or any other Act
    may be used by the Secretary of Housing and Urban Development to provide
    any grant or other assistance to construct, operate, or otherwise
    benefit a facility, or facility with a designated portion of that
    facility, which sells, or intends to sell, predominantly cigarettes or
    other tobacco products. For the purposes of this provision, predominant
    sale of cigarettes or other tobacco products means cigarette or tobacco
    sales representing more than 35 percent of the annual total in-store,
    non-fuel, sales.]

          [prohibition on implementation of puerto rico public housing
                      administration settlement agreement]

        [Sec. 212. No funds may be used to implement the agreement between
    the Commonwealth of Puerto Rico, the Puerto Rico Public Housing
    Administration, and the Department of Housing and Urban Development,
    dated June 7, 2000, related to the allocation of operating subsidies for
    the Puerto Rico Public Housing Administration unless the Puerto Rico
    Public Housing Administration and the Department of Housing and Urban
    Development submit by December 31, 2000 a schedule of benchmarks and
    measurable goals to the House and Senate Committees on Appropriations
    designed to address issues of mismanagement and safeguards against fraud
    and abuse.]

                       [HOPE VI Grant for Hollander Ridge]

        [Sec. 213. The Housing Authority of Baltimore City may use the grant
    award of $20,000,000 made to such authority for development efforts at
    Hollander Ridge in Baltimore, Maryland with funds appropriated for
    fiscal year 1996 under the heading ``Public Housing Demolition, Site
    Revitalization, and Replacement Housing Grants'' for use, as approved by
    the Secretary of Housing and Urban Development--

    [[Page 530]]

            (1) for activities related to the revitalization of the
        Hollander Ridge site; and
            (2) in accordance with section 24 of the United States Housing
        Act of 1937.]

                 [Computer Access for Public Housing Residents]

        [Sec. 214. (a) Use of Public Housing Capital and Operating Funds.--
    Section 9 of the United States Housing Act of 1937 is amended--
            (1) in subsection (d)(1)(E), by inserting before the semicolon
        the following: ``, including the establishment and initial operation
        of computer centers in and around public housing through a
        Neighborhood Networks initiative, for the purpose of enhancing the
        self-sufficiency, employability, and economic self-reliance of
        public housing residents by providing them with onsite computer
        access and training resources'';
            (2) in subsection (e)(1)--
                    (A) in subparagraph (I), by striking the word ``and'' at
                the end;
                    (B) in subparagraph (J), by striking the period and
                inserting ``; and''; and
                    (C) by adding after subparagraph (J) the following:
                    ``(K) the costs of operating computer centers in public
                housing through a Neighborhood Networks initiative described
                in subsection (d)(1)(E), and of activities related to that
                initiative.''; and
            (3) in subsection (h)--
                    (A) in paragraph (6), by striking the word ``and'' at
                the end;
                    (B) in paragraph (7), by striking the period and
                inserting ``; and''; and
                    (C) by inserting after paragraph (7) the following:
            ``(8) assistance in connection with the establishment and
        operation of computer centers in public housing through a
        Neighborhood Networks initiative described in subsection
        (d)(1)(E).''.
        (b) Demolition, Site Revitalization, Replacement Housing, and
    Tenant-Based Assistance Grants for Projects.--Section 24 of the United
    States Housing Act of 1937 is amended--
            (1) in subsection (d)(1)(G), by inserting before the semicolon
        the following: ``, including a Neighborhood Networks initiative for
        the establishment and operation of computer centers in public
        housing for the purpose of enhancing the self-sufficiency,
        employability, an economic self-reliance of public housing residents
        by providing them with onsite computer access and training
        resources''; and
            (2) in subsection (m)(2), in the first sentence, by inserting
        before the period the following ``, including assistance in
        connection with the establishment and operation of computer centers
        in public housing through the Neighborhoods Networks initiative
        described in subsection (d)(1)(G)''.]

                             [Mark-to-Market Reform]

        [Sec. 215. Notwithstanding any other provision of law, the
    properties known as the Hawthornes in Independence, Missouri shall be
    considered eligible multifamily housing projects for purposes of
    participating in the multifamily housing restructuring program pursuant
    to title V of the Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 1998 (Public
    Law 105-65).]

                           [Section 236 Excess Income]

        [Sec. 216. Section 236(g)(3)(A) of the National Housing Act is
    amended by striking out ``fiscal year 2000'' and inserting in lieu
    thereof ``fiscal years 2000 and 2001''.]

                               [cdbg eligibility]

        [Sec. 217. Section 102(a)(6)(D) of the Housing and Community
    Development Act of 1974 is amended by--
            (1) in clause (v), striking out the ``or'' at the end;
            (2) in clause (vi), striking the period at the end; and
            (3) adding at the end the following new clause:
        ``(vii)(I) has consolidated its government with one or more
    municipal governments, such that within the county boundaries there are
    no unincorporated areas, (II) has a population of not less than 650,000,
    (III) for more than 10 years, has been classified as a metropolitan city
    for purposes of allocating and distributing funds under section 106, and
    (IV) as of the date of enactment of this clause, has over 90 percent of
    the county's population within the jurisdiction of the consolidated
    government; or
        ``(viii) notwithstanding any other provision of this section, any
    county that was classified as an urban county pursuant to subparagraph
    (A) for fiscal year 1999, at the option of the county, may hereafter
    remain classified as an urban county for purposes of this Act.''.]

     [exemption for alaska and mississippi from requirement of resident on
                                  board of pha]

        [Sec. 218. Public housing agencies in the States of Alaska and
    Mississippi shall not be required to comply with section 2(b) of the
    United States Housing Act of 1937, as amended, during fiscal year 2001.]

                 [use of moderate rehabilitation funds for home]

        [Sec. 219. Notwithstanding any other provision of law, the Secretary
    of Housing and Urban Development shall make the funds available under
    contracts NY36K113004 and NY36K113005 of the Department of Housing and
    Urban Development available for use under the HOME Investment
    Partnerships Act and shall allocate such funds to the City of New
    Rochelle, New York.]

                           [loma linda reprogramming]

        [Sec. 220. Of the amounts made available under the sixth
    undesignated paragraph under the heading ``Community Planning and
    Development--Community Development Block Grants'' in title II of the
    Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 1999 (Public Law 105-276) for
    the Economic Development Initiative (EDI) for grants for targeted
    economic investments, the $1,000,000 to be made available (pursuant to
    the related provisions of the joint explanatory statement in the
    conference report to accompany such Act (House Report 105-769)) to the
    City of Loma Linda, California, for infrastructure improvements at
    Redlands Boulevard and California Streets shall, notwithstanding such
    provisions, be made available to the City for infrastructure
    improvements related to the Mountain View Bridge.]

               [native american eligibility for the ross program]

        [Sec. 221. (a) Section 34 of the United States Housing Act of 1937
    is amended--
            (1) in the heading, by striking ``PUBLIC HOUSING'' and inserting
        ``PUBLIC AND INDIAN HOUSING'';
            (2) in subsection (a)--
                    (A) by inserting after ``residents,'' the following:
                ``recipients under the Native American Housing Assistance
                and Self-Determination Act of 1996 (notwithstanding section
                502 of such Act) on behalf of residents of housing assisted
                under such Act,'' and
                    (B) by inserting after ``public housing residents'' the
                second place it appears the following: ``and residents of
                housing assisted under such Act'',
            (3) in subsection (b)--
                    (A) by inserting after ``project'' the first place it
                appears the following: ``or the property of a recipient
                under such Act or housing assisted under such Act'';
                    (B) by inserting after ``public housing residents'' the
                following: ``or residents of housing assisted under such
                Act''; and
                    (C) in subsection (b)(1), by inserting after ``public
                housing project'' the following: ``or residents of housing
                assisted under such Act''; and
            (4) in subsection (d)(2), by striking ``State or local'' and
        inserting ``State, local, or tribal''.
        (b) Assessment and Report.--Section 538(b)(1) of the Quality Housing
    and Work Responsibility Act of 1998 is amended by inserting after
    ``public housing'' the following: ``and housing assisted under the
    Native American Housing Assistance and Self-Determination Act of
    1996''.]

         [treatment of expiring economic development initiative grants]

        [Sec. 222. (a) Availability.--Section 220(a) of the Departments of
    Veterans Affairs and Housing and Urban Development, and Independent
    Agencies Appropriations Act, 2000 (Public Law 106-74; 113 Stat. 1075) is
    amended by striking ``September 30, 2000'' and inserting ``September 30,
    2001''.
        (b) Applicability.--The Secretary of the Treasury and the Secretary
    of Housing and Urban Development shall take such actions as may be
    necessary to carry out such section 220 (as amended

    [[Page 531]]

    by this subsection (a) of this section) notwithstanding any actions
    taken previously pursuant to section 1552 of title 31, United States
    Code.]

               [home program disaster funding for elderly housing]

        [Sec. 223. Of the amounts made available under Chapter IX of the
    Supplemental Appropriations Act of 1993 for assistance under the HOME
    investment partnerships program to the city of Homestead, Florida
    (Public Law 103-50; 107 Stat. 262), up to $583,926.70 shall be made
    available to Dade County, Florida, for use only for rehabilitating
    housing for low-income elderly persons, and such amount shall not be
    subject to the requirements of such program, except for section 288 of
    the HOME Investment Partnerships Act (42 U.S.C. 12838).]

                           [cdbg public services cap]

        [Sec. 224. Section 105(a)(8) of the Housing and Community
    Development Act of 1974 is amended by striking ``1993'' and all that
    follows through ``City of Los Angeles'' and inserting ``1993 through
    2001 to the City of Los Angeles''.]

      [extension of applicability of downpayment simplification provisions]

        [Sec. 225. Subparagraph (A) of section 203(b)(10) of the National
    Housing Act (12 U.S.C. 1709(b)(10)(A)) is amended, in the matter that
    precedes clause (i), by striking ``mortgage'' and all that follows
    through ``involving'' and inserting ``mortgage closed on or before
    December 31, 2002, involving''.]

        [use of supportive housing program funds for information systems]

        [Sec. 226. Section 423 of the Stewart B. McKinney Homeless
    Assistance Act is amended under subsection (a) by adding the following
    paragraph:
            ``(7) Management information system.--A grant for the costs of
        implementing and operating management information systems for
        purposes of collecting unduplicated counts of homeless people and
        analyzing patterns of use of assistance funded under this Act.''.]

                     [Indian Housing Loan Guarantee Reform]

        [Sec. 227. Section 184 of the Housing and Community Development Act
    of 1992 is amended--
            (1) in subsection (a), by striking ``or as a result of a lack of
        access to private financial markets''; and
            (2) in subsection (b)(2), by inserting ``refinance,'' after
        ``acquire,''.]

                    [Use of Section 8 Vouchers for Opt-Outs]

        [Sec. 228. Section 8(t)(2) of the United States Housing Act of 1937
    is amended by inserting after ``contract for rental assistance under
    section 8 of the United States Housing Act of 1937 for such housing
    project'' the following: ``(including any such termination or expiration
    during fiscal years after fiscal year 1996 prior to the effective date
    of the Departments of Veterans Affairs and Housing and Urban
    Development, and Independent Agencies Appropriations Act, 2001)''.]

                    [Homeless Discharge Coordination Policy]

        [Sec. 229. (a) Discharge Coordination Policy.--Subtitle A of title
    IV of the Stewart B. McKinney Homeless Assistance Act is amended by
    adding at the end the following new section:

    ``SEC. 402. DISCHARGE COORDINATION POLICY.

        ``The Secretary may not provide a grant under this title for any
    governmental entity serving as an applicant unless the applicant agrees
    to develop and implement, to the maximum extent practicable and where
    appropriate, policies and protocols for the discharge of persons from
    publicly funded institutions or systems of care (such as health care
    facilities, foster care or other youth facilities, or correction
    programs and institutions) in order to prevent such discharge from
    immediately resulting in homelessness for such persons.''.
        (b) Assistance Under Emergency Shelter Grants Program.--Section
    414(a)(4) of the Stewart B. McKinney Homeless Assistance Act is
    amended--
            (1) in the matter preceding subparagraph (A), by inserting a
        comma after ``homelessness'';
            (2) by striking ``Not'' and inserting the following:
        ``Activities that are eligible for assistance under this paragraph
        shall include assistance to very low-income families who are
        discharged from publicly funded institutions or systems of care
        (such as health care facilities, foster care or other youth
        facilities, or correction programs and institutions). Not''.]

                [technical change to seniors housing commission]

        [Sec. 230. Section 525 of the Preserving Affordable Housing for
    Senior Citizens and Families into the 21st Century Act'' (42 U.S.C.
    12701 note) is amended in subsection (a) by striking ``Commission on
    Affordable Housing and Health Care Facility Needs in the 21st Century''
    and inserting ``Commission on Affordable Housing and Health Facility
    Needs for Seniors in the 21st Century''.]

                  [interagency council on the homeless reforms]

        [Sec. 231. Title II of the Stewart B. McKinney Homeless Assistance
    Act is amended--
            (1) in section 202, under subsection (b) by inserting after the
        period the following: ``The positions of Chairperson and Vice
        Chairperson shall rotate among its members on an annual basis.'';
        and
            (2) in section 209 by striking ``1994'' and inserting ``2005''.]

                    [section 8 pha project-based assistance]

        [Sec. 232. (a) In General.--Paragraph (13) of section 8(o) of the
    United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended to
    read as follows:
            ``(13) PHA project-based assistance.--
                    ``(A) In general.--A public housing agency may use
                amounts provided under an annual contributions contract
                under this subsection to enter into a housing assistance
                payment contract with respect to an existing, newly
                constructed, or rehabilitated structure, that is attached to
                the structure, subject to the limitations and requirements
                of this paragraph.
                    ``(B) Percentage limitation.--Not more than 20 percent
                of the funding available for tenant-based assistance under
                this section that is administered by the agency may be
                attached to structures pursuant to this paragraph.
                    ``(C) Consistency with pha plan and other goals.--A
                public housing agency may approve a housing assistance
                payment contract pursuant to this paragraph only if the
                contract is consistent with--
        ``(i) the public housing agency plan for the agency approved under
    section 5A; and
        ``(ii) the goal of deconcentrating poverty and expanding housing and
    economic opportunities.
                    ``(D) Income mixing requirement.--
        ``(i) In general.--Not more than 25 percent of the dwelling units in
    any building may be assisted under a housing assistance payment contract
    for project-based assistance pursuant to this paragraph.
        ``(ii) Exceptions.--The limitation under clause (i) shall not apply
    in the case of assistance under a contract for housing consisting of
    single family properties or for dwelling units that are specifically
    made available for households comprised of elderly families, disabled
    families, and families receiving supportive services.
                    ``(E) Resident choice requirement.--A housing assistance
                payment contract pursuant to this paragraph shall provide as
                follows:
        ``(i) Mobility.--Each low-income family occupying a dwelling unit
    assisted under the contract may move from the housing at any time after
    the family has occupied the dwelling unit for 12 months.
        ``(ii) Continued assistance.--Upon such a move, the public housing
    agency shall provide the low-income family with tenant-based rental
    assistance under this section or such other tenant-based rental
    assistance that is subject to comparable income, assistance, rent
    contribution, affordability, and other requirements, as the Secretary
    shall provide by regulation. If such rental assistance is not
    immediately available to fulfill the requirement under the preceding
    sentence with respect to a low-income family, such requirement may be
    met by providing the family priority to receive the next voucher or
    other tenant-based rental assistance amounts that become available under
    the program used to fulfill such requirement.
                    ``(F) Contract term.--A housing assistance payment
                contract pursuant to this paragraph between a public housing
                agency and the owner of a structure may have a term of up to
                10 years, subject to the availability of sufficient
                appropriated funds for the purpose of renewing expiring
                contracts for assistance payments, as provided in
                appropriations Acts and in the agency's annual contributions
                contract with the Secretary, and to annual compliance with
                the inspection requirements under paragraph (8), except that
                the agency shall not be required to make annual inspections
                of each assisted unit in the devel

    [[Page 532]]

                opment. The contract may specify additional conditions for
                its continuation. If the units covered by the contract are
                owned by the agency, the term of the contract shall be
                agreed upon by the agency and the unit of general local
                government or other entity approved by the Secretary in the
                manner provided under paragraph (11).
                    ``(G) Extension of contract term.--A public housing
                agency may enter into a contract with the owner of a
                structure assisted under a housing assistance payment
                contract pursuant to this paragraph to extend the term of
                the underlying housing assistance payment contract for such
                period as the agency determines to be appropriate to achieve
                long-term affordability of the housing or to expand housing
                opportunities. Such a contract shall provide that the
                extension of such term shall be contingent upon the future
                availability of appropriated funds for the purpose of
                renewing expiring contracts for assistance payments, as
                provided in appropriations Acts, and may obligate the owner
                to have such extensions of the underlying housing assistance
                payment contract accepted by the owner and the successors in
                interest of the owner.
                    ``(H) Rent calculation.--A housing assistance payment
                contract pursuant to this paragraph shall establish rents
                for each unit assisted in an amount that does not exceed 110
                percent of the applicable fair market rental (or any
                exception payment standard approved by the Secretary
                pursuant to paragraph (1)(D)), except that if a contract
                covers a dwelling unit that has been allocated low-income
                housing tax credits pursuant to section 42 of the Internal
                Revenue Code of 1986 (26 U.S.C. 42) and is not located in a
                qualified census tract (as such term is defined in
                subsection (d) of such section 42), the rent for such unit
                may be established at any level that does not exceed the
                rent charged for comparable units in the building that also
                receive the low-income housing tax credit but do not have
                additional rental assistance. The rents established by
                housing assistance payment contracts pursuant to this
                paragraph may vary from the payment standards established by
                the public housing agency pursuant to paragraph (1)(B), but
                shall be subject to paragraph (10)(A).
                    ``(I) Rent adjustments.--A housing assistance payments
                contract pursuant to this paragraph shall provide for rent
                adjustments, except that--
        ``(i) the adjusted rent for any unit assisted shall be reasonable in
    comparison with rents charged for comparable dwelling units in the
    private, unassisted, local market and may not exceed the maximum rent
    permitted under subparagraph (H); and
        ``(ii) the provisions of subsection (c)(2)(C) shall not apply.
                    ``(J) Tenant selection.--A public housing agency shall
                select families to receive project-based assistance pursuant
                to this paragraph from its waiting list for assistance under
                this subsection. Eligibility for such project-based
                assistance shall be subject to the provisions of section
                16(b) that apply to tenant-based assistance. The agency may
                establish preferences or criteria for selection for a unit
                assisted under this paragraph that are consistent with the
                public housing agency plan for the agency approved under
                section 5A. Any family that rejects an offer of project-
                based assistance under this paragraph or that is rejected
                for admission to a structure by the owner or manager of a
                structure assisted under this paragraph shall retain its
                place on the waiting list as if the offer had not been made.
                The owner or manager of a structure assisted under this
                paragraph shall not admit any family to a dwelling unit
                assisted under a contract pursuant to this paragraph other
                than a family referred by the public housing agency from its
                waiting list. Subject to its waiting list policies and
                selection preferences, a public housing agency may place on
                its waiting list a family referred by the owner or manager
                of a structure and may maintain a separate waiting list for
                assistance under this paragraph, but only if all families on
                the agency's waiting list for assistance under this
                subsection are permitted to place their names on the
                separate list.
                    ``(K) Vacated units.--Notwithstanding paragraph (9), a
                housing assistance payment contract pursuant to this
                paragraph may provide as follows:
        ``(i) Payment for vacant units.--That the public housing agency may,
    in its discretion, continue to provide assistance under the contract,
    for a reasonable period not exceeding 60 days, for a dwelling unit that
    becomes vacant, but only (I) if the vacancy was not the fault of the
    owner of the dwelling unit, and (II) the agency and the owner take every
    reasonable action to minimize the likelihood and extent of any such
    vacancy. Rental assistance may not be provided for a vacant unit after
    the expiration of such period.
        ``(ii) Reduction of contract.--That, if despite reasonable efforts
    of the agency and the owner to fill a vacant unit, no eligible family
    has agreed to rent the unit within 120 days after the owner has notified
    the agency of the vacancy, the agency may reduce its housing assistance
    payments contract with the owner by the amount equivalent to the
    remaining months of subsidy attributable to the vacant unit. Amounts
    deobligated pursuant to such a contract provision shall be available to
    the agency to provide assistance under this subsection.
                    Eligible applicants for assistance under this subsection
                may enforce provisions authorized by this subparagraph.''.
        (b) Applicability.--In the case of any dwelling unit that, upon the
    date of the enactment of this Act, is assisted under a housing
    assistance payment contract under section 8(o)(13) of the United States
    Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) as in effect before such
    enactment, such assistance may be extended or renewed notwithstanding
    the requirements under subparagraphs (C), (D), and (E) of such section
    8(o)(13), as amended by subsection (a).]

      [disposition of hud-held and hud-owned multifamily projects for the
                              elderly or disabled]

        [Sec. 233. Notwithstanding any other provision of law, in managing
    and disposing of any multifamily property that is owned or held by the
    Secretary and is occupied primarily by elderly or disabled families, the
    Secretary of Housing and Urban Development shall maintain any rental
    assistance payments under section 8 of the United States Housing Act of
    1937 that are attached to any dwelling units in the property. To the
    extent the Secretary determines that such a multifamily property owned
    or held by the Secretary is not feasible for continued rental assistance
    payments under such section 8, the Secretary may, in consultation with
    the tenants of that property, contract for project-based rental
    assistance payments with an owner or owners of other existing housing
    properties or provide other rental assistance.]

                          [family unification program]

        [Sec. 234. Section 8(x)(2) of the United States Housing Act of 1937
    (42 U.S.C 1437f(x)(2)) is amended--
            (1) by striking ``any family (A) who is otherwise eligible for
        such assistance, and (B)'' and inserting ``(A) any family (i) who is
        otherwise eligible for such assistance, and (ii)''; and
            (2) by inserting before the period at the end the following:
        ``and (B) for a period not to exceed 18 months, otherwise eligible
        youths who have attained at least 18 years of age and not more than
        21 years of age and who have left foster care at age 16 or older''.]

     [permanent extension of fha multifamily mortgage credit demonstrations]

        [Sec. 235. Section 542 of the Housing and Community Development Act
    of 1992 (12 U.S.C. 1707 note) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``demonstrate the
                effectiveness of providing'' and inserting ``provide''; and
                    (B) in the second sentence, by striking
                ``demonstration'' and inserting ``the'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``determine the
                effectiveness of'' and inserting ``provide''; and
                    (B) by striking paragraph (5), and inserting the
                following new paragraph:
            ``(5) Insurance authority.--Using any authority provided in
        appropriation Acts to insure mortgages under the National Housing
        Act, the Secretary may enter into commitments under this subsection
        for risk-sharing units.'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``test the
                effectiveness of'' and inserting ``provide''; and
                    (B) by striking paragraph (4) and inserting the
                following new paragraph:
            ``(4) Insurance authority.--Using any authority provided in
        appropriation Acts to insure mortgages under the National Housing

    [[Page 533]]

        Act, the Secretary may enter into commitments under this subsection
        for risk-sharing units.'';
            (4) by striking subsection (d);
            (5) by striking ``pilot'' and ``Pilot'' each place such terms
        appear; and
            (6) in the section heading, by striking ``DEMONSTRATIONS'' and
        inserting ``PROGRAMS''.]

    SEC. 204. MORTGAGE LIMITS FOR MULTIFAMILY PROJECTS.

        (a) Section 207 Limits.--Section 207(c)(3) of the National Housing
    Act (12 U.S.C. 1713(c)(3)) is amended--
             (1) by striking ``$30,420'', ``$33,696'', ``$40,248'',
        ``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'',
        ``$50,310'', ``$62,010'', and ``$70,200'', respectively;
             (2) by striking ``$9,000'' and inserting ``$11,250''; and
             (3) by striking ``$35,100'', ``$39,312'', ``$48,204'',
        ``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'',
        ``$60,255'', ``$75,465'', and ``$85,328'', respectively.
        (b) Section 213 Limits.--Section 213(b)(2) of the National Housing
    Act (12 U.S.C. 1715e(b)(2)) is amended--
             (1) by striking ``$30,420'', ``$33,696'', ``$40,248'',
        ``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'',
        ``$50,310'', ``$62,010'', and ``$70,200'', respectively; and
             (2) by striking ``$35,100'', ``$39,312'', ``$48,204'',
        ``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'',
        ``$60,255'', ``$75,465'', and ``$85,328'', respectively.
        (c) Section 220 Limits.--Section 220(d)(3)(B)(iii) of the National
    Housing Act (12 U.S.C. 1715k(d)(3)(B)(iii)) is amended--
             (1) by striking ``$30,420'', ``$33,696'', ``$40,248'',
        ``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'',
        ``$50,310'', ``$62,010'', and ``$70,200'', respectively; and
             (2) by striking ``$35,100'', ``$39,312'', ``$48,204'',
        ``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'',
        ``$60,255'', ``$75,465'', and ``$85,328'', respectively.
        (d) Section 221(d)(3) Limits.--Section 221(d)(3)(ii) of the National
    Housing Act (12 U.S.C. 1715l(d)(3)(ii)) is amended--
             (1) by striking ``$33,638'', ``$38,785'', ``$46,775'',
        ``$59,872'', and ``$66,700'' and inserting ``$42,048'', ``$48,481'',
        ``58,469'', ``$74,840'', and ``$83,375'', respectively; and
             (2) by striking ``$35,400'', ``$40,579'', ``$49,344'',
        ``$63,834'', and ``$70,070'' and inserting ``$44,250'', ``$50,724'',
        ``$61,680'', ``$79,793'', and ``$87,588'', respectively.
        (e) Section 221(d)(4) Limits.--Section 221(d)(4)(ii) of the National
    Housing Act (12 U.S.C. 1715l(d)(4)(ii)) is amended--
             (1) by striking ``$30,274'', ``$34,363'', ``$41,536'',
        ``$52,135'', and ``$59,077'' and inserting ``$37,843'', ``$42,954'',
        ``$51,920'', ``$65,169'', and ``73,846'', respectively; and
             (2) by striking ``$32,701'', ``$37,487'', ``$45,583'',
        ``$58,968'', and ``$64,730'' and inserting ``$40,876'', ``$46,859'',
        ``$56,979'', ``$73,710'', and ``$80,913'', respectively.
        (f) Section 231 Limits.--Section 231(c)(2) of the National Housing
    Act (12 U.S.C. 1715v(c)(2)) is amended--
             (1) by striking ``$28,782'', ``$32,176'', ``$38,423'',
        ``$46,238'', and ``$54,360'' and inserting ``$35,978'', ``40,220'',
        ``$48,029'', ``$57,798'', ``$67,950'', respectively; and
             (2) by striking ``$32,701'', ``$37,487'', ``$45,583'',
        ``$58,968'', and ``$64,730'' and inserting ``$40,876'', ``$46,859'',
        ``$56,979'', ``$73,710'', and ``80,913'', respectively.
        (g) Section 234 Limits.--Section 234(e)(3) of the National Housing
    Act (12 U.S.C. 1715y(e)(3)) is amended--
             (1) by striking ``$30,420'', ``$33,696'', ``$40,248'',
        ``$49,608'', and ``$56,160'' and inserting ``$38,025'', ``$42,120'',
        ``$50,310'', ``$62,010'', and ``$70,200'', respectively; and
             (2) by striking ``$35,100'', ``$39,312'', ``$48,204'',
        ``$60,372'', and ``$68,262'' and inserting ``$43,875'', ``$49,140'',
        ``$60,255'', ``$75,465'', and ``$85,328'', respectively.
        SEC. 205. CLARIFICATION REGARDING MORTGAGE INSURANCE FOR PURCHASE OF
    EXISTING HEALTH CARE FACILITIES.--Section 223(f)(1) of the National
    Housing Act is amended by inserting ``purchase or'' immediately before
    ``refinancing of existing debt''.

                       EMERGENCY HOMEOWNERSHIP COUNSELING

         SEC. 206. Section 106(c)(9) of the Housing and Urban Development
    Act of 1968 is repealed.

                          FHA INSURANCE FOR HYBRID ARMS

         SEC. 207. Section 251 of the National Housing Act is amended--
             (1) in subsection (b), by striking ``issue regulations'' and
        all that follows and inserting the following: ``require that the
        mortgagee make available to the mortgagor, at the time of loan
        application, a written explanation of the features of an adjustable
        rate mortgage consistent with the disclosure requirements applicable
        to variable rate mortgages secured by a principal dwelling under the
        Truth in Lending Act.''; and
            (2) by adding the following new subsection at the end:
                     ``(d)(1) The Secretary may insure under this subsection
                a mortgage that meets the requirements of subsection (a),
                except that the effective rate of interest--
                     ``(A) shall be fixed for a period of not less than the
                first 3 years of the mortgage term;
                     ``(B) shall be adjusted by the mortgagee initially upon
                the expiration of such period and annually thereafter; and
                     ``(C) in the case of the initial interest rate
                adjustment, is subject to the 1 percent limitation only if
                the interest rate remained fixed for 5 or fewer years.
                     ``(2) The disclosure required under subsection (b)
                shall be required for a mortgage insured under this
                subsection.
                     ``(3) The Secretary may implement this subsection in
                advance of rulemaking.''.

    SEC. 208. MORTGAGE INSURANCE PREMIUMS FOR SECTION 203(k) AND SECTION 234
        SINGLE FAMILY PROGRAMS.

         (a) RISK-BASED PREMIUMS.--Section 203(c) of the National Housing
    Act is amended--
             (1) in paragraph (1), by striking ``and (k)'' and ``or (k)'';
        and
            (2) in paragraph (2)--
                     (A) by inserting immediately after ``subsection (v),''
                the following: ``, and each mortgage that is insured under
                subsection (k) or section 234(c),''; and
                     (B) by striking ``and executed on or after October 1,
                1994,''.
         (b) EFFECTIVE DATE.--The amendments made by subsection (a) shall--
             (1) apply only to mortgages that are executed on or after the
        date of enactment of this Act or a later date determined by the
        Secretary and announced by notice in the Federal Register; and
             (2) be implemented in advance of any necessary conforming
        changes to regulations.

    SEC. 209. STANDARDS AND NEED FOR HOSPITALS WITH MORTGAGE INSURANCE.
        Section 242(d)(4) of the National Housing Act is amended to read as
        follows:

         ``(4)(A) The Secretary shall require satisfactory evidence that the
    hospital will be located in a State or political subdivision of a State
    with reasonable minimum standards of licensure and methods of operation
    for hospitals and satisfactory assurance that such standards will be
    applied and enforced with respect to the hospital.
         ``(B) The Secretary shall establish the means for determining need
    and feasibility for the hospital. If the State has an official procedure
    for determining need for hospitals, the Secretary shall also require
    that such procedure be followed before the application for insurance is
    submitted, and the application shall document that need has also been
    established under that procedure.''.

    SEC. 210. STANDARDS AND NEED FOR NURSING HOMES, INTERMEDIATE CARE
        FACILITIES, OR COMBINED NURSING HOMES AND INTERMEDIATE CARE
        FACILITIES WITH MORTGAGE INSURANCE. Section 232(d)(4)(A) of the
        National Housing Act is amended to read as follows:

         ``(A)(i) The Secretary shall require satisfactory evidence that a
    nursing home, intermediate care facility, or combined nursing home and
    intermediate care facility will be located in a State or political
    subdivision of a State with reasonable minimum standards of licensure
    and methods of operation for such homes, facilities, or combined homes
    and facilities. The Secretary shall also require satisfactory assurance
    that such standards will be applied and enforced with respect to the
    home, facility, or combined home or facility.
        ``(ii) The Secretary shall establish the means for determining need
    and feasibility for the home, facility, or combined home and facility.
    If the State has an official procedure for determining need for such
    homes, facilities, or combined homes and facilities, the Secretary shall
    also require that such procedure be followed before the application for
    insurance is submitted, and the application shall document that need has
    also been established under that procedure.''.

    [[Page 534]]

                      Repeal of Section 236(s) Loan Program

        Sec. 211. (a) Section 236(s) of the National Housing Act (12 U.S.C.
    1715z-1(s)) is amended--
            (1) in the heading by striking ``AND LOANS'';
            (2) in paragraph (1), by deleting ``and loans'' after
        ``grants'';
            (3) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by
                striking ``or loan''; and
                    (B) in subparagraph (E)(i), by striking ``or loan (as
                appropriate)'';
            (4) in paragraph (3), in the matter that precedes subparagraph
        (A), by striking ``or loan'';
            (5) in paragraph (4)--
                    (A) by striking in the paragraph heading ``AND LOAN'';
                and
                    (B) by deleting ``or loan'' after ``grant'', each place
                it appears;
            (6) in paragraph (6), by deleting ``or loan'' after ``grant'',
        each place it appears;
            (7) in paragraph (7), by deleting subparagraph (D); and
            (8) by deleting paragraph (5) and redesignating paragraphs (6)
        and (7) as (5) and (6).
        SEC. 212. AUTHORITY FOR HUD TO TERMINATE MORTGAGEE ORIGINATION
    APPROVAL FOR POORLY-PERFORMING MORTGAGEES.--Section 533 of the National
    Housing Act is amended to read as follows:
            ``SEC. 533. REVIEW OF MORTGAGEE PERFORMANCE AND AUTHORITY TO
        TERMINATE.
                    ``(a) Periodic Review of Mortgagee Performance.--To
                reduce losses in connection with single family mortgage
                insurance programs under this Act, at least once a year the
                Secretary shall review the rate of early defaults and claims
                for insured single family mortgages originated or
                underwritten by each mortgagee.
                    ``(b) Comparison With Other Mortgagees.--For each
                mortgagee, the Secretary shall compare the rate of early
                defaults and claims for insured single family mortgage loans
                originated or underwritten by the mortgagee in an area with
                the rate of early defaults and claims for other mortgagees
                originating or underwriting insured single family mortgage
                loans in the area. For purposes of this section, the term
                ``area'' means each geographic area in which the mortgagee
                is authorized by the Secretary to originate insured single
                family mortgages.
                    ``(c) Termination of Mortgagee Origination Approval.--
                (1) Notwithstanding section 202(c) of this Act, the
                Secretary may terminate the approval of a mortgagee to
                originate or underwrite single family mortgages if the
                Secretary determines that the mortgage loans originated or
                underwritten by the mortgagee present an unacceptable risk
                to the insurance funds. The determination shall be based on
                the comparison required under subsection (b) and shall be
                made in accordance with regulations of the Secretary. The
                Secretary may rely on existing regulations published before
                this section takes effect.
                    ``(2) The Secretary shall give a mortgagee at least 60
                days prior written notice of any termination under this
                subsection. The termination shall take effect at the end of
                the notice period, unless the Secretary withdraws the
                termination notice or extends the notice period. If
                requested in writing by the mortgagee within 30 days of the
                date of the notice, the mortgagee shall be entitled to an
                informal conference with the official authorized to issue
                termination notices on behalf of the Secretary (or a
                designee of that official). At the informal conference, the
                mortgagee may present for consideration specific factors
                that it believes were beyond its control and that caused the
                excessive default and claim rate.''.

    SEC. 213. REPEAL OF FEDERALIZATION OF PUBLIC HOUSING UNITS.

        (a) Section 9(n)(1) of the United States Housing Act of 1937 is
    hereby repealed.
        (b) Section 226 of the Departments of Veterans Affairs and Housing
    and Urban Development, and Independent Agencies Appropriations Act,
    1999, is hereby repealed.
        (c) The amendment made by subsection (a) shall be deemed to have
    taken effect on October 1, 1998.
        (d) The amendment made by subsection (b) shall be deemed to have
    taken effect on October 21, 1998.

                       AMENDMENT TO DOWNPAYMENT ASSISTANCE

        Sec. 214.  Section 8(y)(7)(A) of the United States Housing Act of
    1937 is amended by striking ``for fiscal year 2000 and each fiscal year
    thereafter to the extent provided in advance in appropriations Acts''.
    (Departments of Veterans Affairs and Housing and Urban Development, and
    Independent Agencies Appropriations Act, 2001, as enacted by section
    1(a)(1) of P.L. 106-377.)

                          General Fund Receipt Accounts

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2000 actual   2001 est.   2002 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      86-271910  FHA-general and special
        risk, Negative subsidies............          62         103         445
      86-271930  FHA-general and special
        risk, Downward reestimates of
        subsidies...........................                     304
      86-274330  Indian housing loan
        guarantees, downward reestimates of
        subsidies...........................                       6
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................          62         413         445
    ---------------------------------------------------------------------------